TAX PREPARATION

organizing and filing your taxes with the IRS or your state tax agency. It involves collecting financial records, calculating your income and deductions, and completing the correct tax forms (like the 1040 for individuals).

What’s Included in Tax Prep:

• Gathering Documents: W-2s, 1099s, receipts, bank statements, etc.

• Calculating Income: From jobs, side gigs, investments, etc.

• Identifying Deductions/Credits: Such as education credits, child tax credit, business expenses, etc.

• Filing Taxes: Submitting the return electronically or by mail to the IRS and/or state.

Who Does Tax Prep?

• Individuals (do it themselves using software like TurboTax)

• Tax Professionals (CPAs, Enrolled Agents, or trained preparers)

• Businesses (hire professionals to file business returns)

Why It’s Important:

• Avoid IRS Penalties

• Maximize Refunds or Reduce What You Owe

• Stay Compliant with the Law