While issues such as unemployment aid and stimulus checks routinely make front page news during the COVID-19 pandemic, many of the economic relief packages that have passed into law over the last year have also contained either permanent or temporary changes to tax laws. While these changes are designed to provide individuals and companies with much-needed tax relief during difficult financial times, the sheer number of new tax rules can also make it a bit more confusing to file your taxes. This is just one of the reasons why it is so important to make sure you are using the services of a tax preparation company when preparing your return.
Don't Miss Out On Important Tax Breaks
There are a variety of tax breaks that have been made available to both individuals and companies to help ease financial burdens felt by those people who were forced out of work by pandemic-related restrictions. For instance, while unemployment income is typically considered taxable income, individuals are able to enjoy a tax exemption this year on any unemployment benefits they received up to a certain dollar amount. Working with a tax preparation service when preparing your return will help to ensure that you do not miss out on any tax breaks such as this one so that you can truly minimize your tax liability.
Be Sure You Are Accurately Reporting Self-Employment Income
If you are self-employed, it is more important than ever to ensure you are accurately reporting your income, as well as ensuring that you have reported this income using the proper tax schedules. This is because many relief programs that are now available to self-employed individuals will require you to submit a copy of your tax return in order to not only prove self-employment but to also to verify your income. Ensuring that your income has been properly reported to the IRS is a vital step in ensuring you are able to get any relief benefits that you are entitled to.
Make Sure You Have Claimed All Eligible Dependents
In addition to receiving stimulus funds for yourself, you may be able to receive additional stimulus funds for any dependents that you have. In some cases this will include adult dependents as well. This is why it is so important to make sure you are claiming all eligible dependents on your tax return. Working closely with a qualified tax preparation company will allow you to determine who qualifies as a dependent so that you can get all of the credits that you are entitled to.
Contact a company that offers tax preparation services to learn more.