With thousands of pages and constant updates, the tax code can be incredibly confusing. However, a clear understanding of the law is essential for decreasing your tax burden and avoiding the fines and penalties that result from innocent mistakes. Filing season is only a few months away, so it’s important to start your tax education early to make sure you’re prepared. The expert accountant at Linda M. Shiraiwa, CPA, PS, in Gig Harbor, WA, shares some common tax questions and answers below.

Some Common Tax Questions Answered

What Do I Need to Prepare My Taxes?

If you only have one source of income and plan to take the standard deduction, you’ll need to bring your W-2. Independent contractors and the self-employed will need all of their 1099 forms, as well as receipts for any business expenses. If you’re meeting with a new tax preparation professional, having a copy of your previous year’s return will make the process much faster.

For How Long Can I Claim My Children?

Claiming children as dependents can significantly reduce your tax liability, but they must live with you for at least half the year and you have to be responsible for half of their living expenses. In general, you can claim your children until they’re 19, or 24 if they’re in college.

How Long Do I Need to Keep My Records?

In most cases, the IRS recommends keeping your returns, earnings statements, and receipts for three years. However, a variety of other situations could alter this time-frame. For instance, if you failed to file on time, your safest bet is to not throw them away.

Should I See a Tax Preparation Professional?

While there are a variety of online tools to help you prepare and file your taxes, only a professional can answer your questions, review your records, and make sure you get all of the deductions you’re entitled to. With their in-depth tax education and expertise, they provide the peace of mind that comes from knowing your returns are free of mistakes.

Whether you’re a business owner or an individual with some investments, Linda M. Shiraiwa, CPA, PS, has the expertise to make sure your taxes are prepared accurately and submitted on time. She provides everything from personalized tax education services to return preparation tailored to your financial situation. Visit her website to learn more about how she can help. Call (253) 858-6030 for a free consultation. For more advice and tips, follow her on Facebook.