Income tax preparation New York City is a time of year we don’t want to think about, must it must be done. Any person living in the United States has to pay income taxes so there is no way around it. Income tax preparation can be confusing if you don’t know about tax forms. The income tax preparation in New York City process becomes more complex the more you earn. It means more forms are involved. Learning about tax preparation forms will make the process less confusing.
The first step is learning to choose the right tax form. The basic tax forms are the 1040 groups which includes 1040 EZ and 1040A. These are designed for most all kinds of wages and for itemizing deductions if they are not standard ones. 1040EZ forms are intended for married couples filing jointly or single persons. The tax payers who use this form must be under 65 with no dependents, must not be blind, and earn under $100,000. Their total non-itemized deductions must be less than $1500. The 1040A form are for tax payers who make under $100,00, but have itemized deductions.
If you are an independent contractor or business, you need 1099 forms. You must file the 1099 if you earned more than $600 for the previous tax year. Independent contractors should get their forms from their respective companies no later than January 31. There are several variations of 1099 forms. Independent contractors or tax payers who receive non-employed income need you need 1099-Misc. A 1099-Int form refers to the interest you draw on bank accounts. You should get a statement form your bank summarizing total interest for the last year. The 1099 DIV form is for investors. It is sent to investors by brokers or investment companies. It reports any taxable profits the investor earned. A 1099-C form is used for bankruptcy or other debt cancellation proceedings. A 1099 B form is for bartering. This means if you received an item for payment that has value, you have to report the earnings.
When you know the different tax forms, the process is much simpler. Most forms can be found at you local library or from the IRS. Be certain to prepare taxes well in advance of the April 15 deadline. If you need help, contact Woloshen & Herman C.P.A.
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