The process of filing taxes can involve a lot of questions. Tax return preparation can get even more complicated if your circumstances have changed or with the introduction of new laws. If you’re not sure where to get started, here’s some information about income taxes that may help simplify the filing process.

A Guide to Income Tax Returns

When is the filing deadline?

This year’s income tax filing deadline is April 15, 2020. Timely tax return preparation is essential since you may face late penalties from the IRS if you miss the deadline. The penalties include being charged an additional percentage of owed taxes for every month you’re late.

How do tax brackets work?

Income tax brackets provide a guideline for the IRS to know how much a person owes. Specifically, individuals must pay a certain percentage for each portion—or bracket—of wages that they earn. Earning more means having to pay more as you cross into each earning threshold.

Is it better for married couples to file jointly or separately?

It’s usually best for couples to file jointly due to the many tax breaks the IRS extends to married partners. However, filing separately may be advantageous if your spouse has expenses or deductions that may complicate or restrict the amount you get back from the government. If you’re unsure, prepare your returns both ways to see which will have the least economic impact.  

When can I claim a child as a dependent?

In general, you can claim a child as a dependent if they’re younger than 19 years old or are a student that will be under 24 years by the end of the calendar year. If your child is permanently disabled, age limits may not apply. However, you still need to pass the IRS’ qualifying dependent test. You can determine dependent eligibility using the IRS’ online assessment or asking a qualified professional.

Whether you have questions about deductions or dependents, Roy E. Carter, CPA, PC in Staunton, VA, will help clear up any confusion about your income taxes. Serving the community for more than two decades, this experienced certified public accountant is well-versed in tax laws and strategies that can help reduce your amount owed. And as a CPA, he is also qualified to provide IRS representation for all related matters—such as audits. Visit this accountant online to learn more about his services or call (540) 886-6251 to start your tax return preparation.