Taking Care of Your Taxes

Accountants in Essex
Unit B, The Laindon Barn
Dunton Road
SS15 4DB
Phone: 01268 330162

April 5 seems to be a dreaded day in the lives of many people because that is the day of each year when out income taxes are due. As long as the envelope is postmarked on that date, you are good to go if you send in your return in the US mail.

There are several computerized packages that can be utilized as well for preparing and completing your tax return, or you can go to one of the franchised preparers such as H&R Block, Jackson Hewitt, and others. There are also private tax preparation people, as well as your local CPA.

Or, you can simply prepare your tax documents yourself, it is not really that difficult. If you do a reasonably adequate job of saving your receipts during the year, you should not fear filling out your own forms and organizing them so that your forms are accurately and neatly completed.

It does depend on what type of taxpayer you are too, as far as how complex your tax forms can get. If you are a self-employed business owner, and you have a complex inventory, a detailed cash flow situation, and a payroll to make, then you should seek the assistance of a professional, either a competent bookkeeper who also prepares taxes, or a CPA.

However if you work at a job, have no other deductions than your home mortgage, you will probably save money by completing your own tax forms and sending them in yourself. In this case the biggest deduction for most people budgetingwill be the interest that they paid on their house, and you will want to match that against the standard deduction. For the tax year 2014, the mortgage interest would have to exceed $12,400 to justify filling out a 1040 long form, but that is not so much of a big problem.

If a person has a new home with a 30 year mortgage, and say that their mortgage payment is £25,000 per month, then approximately 95% of that will be deductible because you mostly pay interest in the beginning of the mortgage. So in this case a person would be able to deduct $28,500 in interest. This alone will save in the neighborhood of $5,000 to $7,000 in taxes.

Anyone can do a little studying and figure out how to do their own taxes. It is not that difficult, and once you get the hang of it, you will have no problem doing your taxes yourself each year.

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