Do you feel unprepared or worried about your upcoming tax time? Do you have a variety of tax questions that remain unanswered? If so, then it’s time to bring in a CPA. Bringing in the help of a tax professional can alleviate much of the stress you feel.
We’ve compiled a list of some of the most common tax questions CPAs are commonly asked. If you aren’t sure of what to ask, you could end up paying too much or too little in taxes.
Keep reading to learn tax help questions to ask a CPA before filing your taxes.
1. How to File Taxes for Self-Employment?
File a separate tax return. Keep good records throughout the year to accurately report your income and expenses come tax time. Calculate your self-employment taxes. This is a tax that is being applied to your net earnings from self-employment.
The amount you owe will also depend on your income and filing status.
2. What Deductions to Take?
As a small business owner, you may be able to take advantage of a number of different tax deductions. These can include business expenses, home office expenses, and vehicle expenses.
Tracking your expenses in order to claim them is necessary, and you should consult with a tax advisor to make sure you are taking advantage of all the deductions you are entitled to.
3. What to Do If You Can’t Pay Your Taxes?
You should always file your return. This will help you avoid any penalties and fees. Then set up a payment plan with the IRS or contact your local tax office for help. If you owe back taxes, you may be able to negotiate a payment plan or offer in compromise.
You should also consider getting a professional to teach you all about these tax resolution services that they offer and also to help you resolve your tax debt.
4. How to File an Amended Tax Return?
Form 1040X is used to correct errors on your original tax returns. Include any additional information or documentation that is needed to support your amended return.
Once you have completed Form 1040X, mail it to the address listed on the form.
5. What Happens If You Miss Deadline?
You may be subject to a late filing penalty. The penalty is 5% of the unpaid taxes for each month that the return is late, up to a maximum of 25%. So, if you owe $1,000 in taxes and you file your return one month late, you’ll owe a $50 penalty.
Also, you may be charged interest on unpaid taxes. The interest rate is currently 4%, and it accrues daily. This is why you should file your return as soon as possible. The sooner you file, the lower your penalty and interest charges will be.
Know the Different Tax Help Questions Today
It is now clear to you that if you want to be able to do your own taxes, it is crucial that you familiarize yourself with tax help questions. This way, you will know what to expect when you are preparing your own taxes.
You will be able to better understand the tax process and how to properly file your taxes. There are many resources available that can help you familiarize yourself with tax help questions.
You can find these resources online, in books, or by speaking with a tax professional.
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