Tax preparation services can cut down on the work involved in filing your annual income tax return. There are many different services available. You can use the services of a tax professional, accountant or tax lawyer depending on your circumstances. Tax professionals and accountants try to maximize your tax refund for you. Tax professionals have experience in tax law, and are informed about any changes that may affect your return. A tax attorney may be required if you need help dealing with the IRS. This could involve fraud, back taxes, or an audit. A tax attorney knows tax law, and knows what the IRS expects. They will usually have experience in tax courts. You will need to do a little homework to find the right person or company to meet your needs. Tax preparation services can be costly, but worth your while if you are in trouble with the IRS.
Electronic tax filing services are another option. You can access these services online, or at your local electronics store. The IRS website has a list of many electronic tax software options. In fact, the IRS has negotiated with a number of tax software companies to allow certain people to use the service at no charge. People who earn less than $56,000 may qualify for these free services. There are exceptions, such as bankruptcy or capital gains.
There are different software options depending how complicated your return is. Ordinary income is the money you made through wages or salaries, or interest from investments. Income also includes dividends from stock shares or business profits. Income earned through capital gains requires specific forms that need to be filled out. Capital gains tax rates differ depending on the type of capital gain. If you sell investment property or stocks within a year, you will be taxed at the normal income rate. Long-term capital gains are taxed at a lower rate. In fact, there are a number of categories for capital gains, such as small business, real estate or collectibles. You will have to ensure the tax service you select includes all of the forms and deductions you need to make.