The responsibilities of filing taxes on your own can quickly become difficult. It is also significantly easy for individuals to make simple mistakes or misunderstand IRS jargon. It is necessary for them to manage stressful factors such as finances, investments, W-2s, etc. However, dealing with taxes and filing returns are some of the most challenging and crucial parts of effectively and accurately filing taxes every year. Additionally, it is a major task that requires a great deal of expertise and is often time-consuming, particularly when an individual has complicated investments or retirement plans.
Individuals may think that preparing their own taxes is a good idea as a way to save money or to get a better understanding of their finances. However, it is important to note that taxes can become extremely complicated very quickly. Tax laws tend to change constantly with the legislative environment today. The process of preparing personal tax preparation can prove to be very challenging if an individual decides to file themselves. Many individuals may not fully comprehend the IRS jargon, which leaves individuals guessing and inaccurately filing tax forms. Additionally, they may not understand the confusing tax rules or be able to keep up with the changes to tax laws that occur almost every year.
A personal tax preparer is able to assist in preparing and filing tax returns when individuals feel overwhelmed by the idea of handling taxes on their own. The main goal of tax preparation services is to help individuals understand the changes in tax laws that could impact their individual, estate, or gift taxes, as well as accurately file all tax-related forms for the requesting individual. It is highly recommended that individuals hire professional personal tax preparation services, like the ones offered at Robinson, Gruters, & Roberts, CPAs, to assist them with managing personal finances and earnings in accordance with tax laws. When hired, our tax preparers near you will make sure that every tax benefit is taken advantage of, and all tax forms will be filed accurately and promptly.
Skip To: What Is A Tax Preparer? – Personal Vs. Business Tax Filing Dates – Personal Vs. Business Tax Deductions
Top-Rated Tax Preparation Services in Venice, Florida
The tax planning and preparation services we provide assist individuals with minimizing their tax liabilities, maximizing their cash flow, and keeping them on track with their financial goals. We keep up to date with tax laws and can assist individuals with making sense of their receipts, bills, and notices.
What Is A Tax Preparer?
Our tax preparers at Robinson, Gruters, & Roberts, CPAs, are individuals who are knowledgeable about tax laws, procedures, and practices associated with filing taxes as set forth by the Internal Revenue Service (IRS). The purpose of tax preparers, or tax CPAs, is to ensure that individuals comply with the tax code to the fullest extent possible. It is also our duty to ensure that individuals are not inadvertently committing tax fraud because the guidelines and laws surrounding taxes can be complex and change from year to year.
A tax preparer should always have and IRS issues Preparer Tax Identification Number (PTIN). Only tax professionals with a PTIN can legally prepare taxes for compensation and represent individuals while dealing with the IRS. A tax professional who is in possession of a PTIN is entitled to prepare federal and state income tax returns. Our tax CPAs all posses a PTIN and prepare documents, audit the statements, in addition to filing tax returns on our clients behalf. Based on data provided by the IRS, about 53.5% of taxpayers hire tax preparation services to prepare their returns each year, and hte percentage continues to rise.
<h2id=”preparation”>Personal Tax Preparation Vs. Business Tax Preparation
When individuals think about filing their tax returns, there are multiple similarities that can be seen. However, when weighing personal tax preparation against business tax preparation, it is easy to see the differences between the two. At Robinson, Gruters, & Roberts, CPAs, our expert tax preparers make sure that our clients’ personal and business taxes comply will all necessary tax requirements. Here are some of the differences between personal tax preparation and handling the many duties involved in filing business income taxes.
Tax Rates For Personal & Business Taxes Differ
There is no universal tax rate for individuals and businesses. In the case of a sole proprietorship, the self employment income will likely be subject to personal tax rates ranging from 10% to 39.6%. Remember that this figure does not include the self employment tax amount of 15.3%.
If an individual is not self employed and works for another employer, they do not have to pay personal income tax, as Florida does not have a state individual income tax. Therefore that is one less step in the process for the personal tax preparation process. However, the corporate income tax rate in Florida is 5.5%. Additionally, the state sales tax rate in Florida is 6%, the maximum local sales tax rate is 2%, and the combined state and local sales tax rate is 7.01%.
Filing Dates Differ For Personal & Business Taxes
The due dates for tax filing and payment is different for personal taxes than it is for business taxes. Typically, all personal income taxes must be filed by October 31, whereas business tax due dates vary depending upon if they are filing themselves or through a tax CPA.
Due to Hurricane Ian ravaging the coasts of Florida this year, the tax deadlines have been changed. The deadline has been extended to February 15, 2023. Personal income tax returns for 2021 that are due on October 17, 2022 have been pushed back for Hurricane Ian survivors. It should be noted, however, that payments for 2021 income taxes that were due on April 18, 2022 have not been extended. On the other hand, corporations with a 2021 filing extensions that expires on October 17 are also allowed until February 15, 2023 to file and pay their taxes. Tax exempt organizations have also been granted an extensions for filing their 2021 returns.
Personal Tax Deductions Aren’t The Same As Business Tax Deductions
Many deductions and credits are available to those filing either business taxes or personal taxes, which can lower the amount owed in taxes or allow them to receive a refund from the Internal Revenue Service (IRS). However, the deductions that can be made when filing personal taxes are different than the deductions that can be made when filing business taxes.
Personal Tax Deductions
If individuals itemize their personal deductions instead of taking the standard deduction, they will be able to claim most of the top personal tax deductions for individuals. The most common deductions taken when filing personal taxes are:
- Medical expenses
- Charity contributions
- Homeowner deductions
- Mortgage interest
- Retirement credits
- IRA contributions
- Student loan interest
- Property taxes
- State taxes paid
- Much more
Business Tax Deductions
In order to lower their income tax bills, business owners should take advantage of business tax deductions and credits. In addition to speeding up the income tax filing process, these top tax write offs will also reduce the tax amount business owners will owe.
- Business meals
- Work travel expenses
- Business insurances
- Home office expenses
- Phone and internet expenses
- Professional service fees
- Charitable contributions
- Energy efficiency expenses
- Much more
The money you earn may be subject to special corporate income tax rates if you have formally formed a corporation. Rates of corporate taxation vary similarly to those of personal taxation. If your business generates more revenue than previous years, you will generally be placed in a higher tax bracket.
Contact The #1 Voted CPA Firm in Venice, Florida
Robinson, Gruters & Roberts has been helping individuals, small businesses, and nonprofit organizations reach their goals for more than 50 years. Not only do we offer a full range of personal tax preparation services at our Venice, FL accountant office we also provide services in corporate CPA tax preparation, IRS preparation, Quickbooks accounting & bookkeeping, assurance services, and entity selection & restructuring.
“Eric Robinson has been our CPA for several years and has worked on both our personal and business taxes. During tax season he and his team are super responsive and they turn around our returns in no time. He is also easily accessible throughout the year to answer tax-related questions. His team is friendly and the fees are reasonable.”
⭐️⭐️⭐️⭐️⭐️ 5/5 Rating from Tracy Knight on Google
“Highly recommend Robinson, Gruters & Roberts, CPA firm. I’ve been using them for several years and they are consistently responsive and provide expert tax assistance and advice. The office staff and Eric Robinson are helpful and easy to talk with regarding tax matters. They are awesome!”
⭐️⭐️⭐️⭐️⭐️ 5/5 Rating from Marilyn S. J. on Google
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