- April 30, 2024
Even though filing taxes in New York for submitting federal income tax for 2024 can seem overwhelming, however, you can tackle your tax season if you avoid rookie mistakes and is ready to move one step at a time – while at the same time taking the benefits of availing money-saving opportunities.
Step # 1
Primarily remember, you only need to file a tax return if you meet or exceed certain levels of income during the year.
As advised by tax preparation services in NYC, if you are employed, look in your salary slip for the “year to date” income.
Now, if you are doing multiple jobs for your sustenance, ensure that you add up all your payments that you have received from all your sources of income. This can also include the money that you made out of your investments or interests, rental properties, anything you have sold, and more.
Step #2
To make your life easier during the tax season, stay on top of tax-related paperwork throughout the year.
For the ease of filing taxes in New York, keep the receipts of things like work-related expenses that you have incurred during the year, records of charitable donations made, and more.
You can also keep the statements from any grants or fellowships, student loans, or any other investments that you have made over the year.
This is because having these records organized and handy can aid in determining whether to itemize or take the standard deduction which can make the process of filing taxes in New York easier.
Remember that you must also keep all your paperwork that you have done after you file your income tax returns. All the tax preparation services in NYC and also the IRS recommends keeping records for the last three years.
Step #3
Ensure that you receive the forms indicating how much you have earned over the year from your employer(s) and other sources of income by January or February end.
Now if you are a full-time employee you will receive Form W-2 illustrating your income, as well as which taxes were withheld.
Similarly, if you are working as a freelancer or are on contract, you may receive Form 1099-NEC detailing your earnings.
You may also receive documents showing dividends or interest earned on investments (Forms 1099-DIV or 1099-INT for example), or student loan interest you’ve paid (Form 1098-E).
If you’re a college student (or you have a dependent who is), you’ll receive a Form 1098-T which shows how much you paid in tuition, as well as any amounts you received from grants or fellowships, to help you figure out deductions and credits related to education expenses.
Step #4
Finding a sense of which deductions or credits you may be eligible for may help you to provide the proper documentation while filing your taxes.
Here are a few considerations:
- Student Loan Interest Deduction: Taxpayers can deduct up to $2,500 in interest payments on student loans, depending on their modified adjusted gross income.
- Saver’s Credit: Individuals who are not full-time students and are not claimed as dependents may qualify for a tax credit by contributing to a retirement plan. The credit amount is contingent upon filing status and adjusted gross income. For the tax year 2024, eligibility for singles with an adjusted gross income of $38,250 or less and married couples filing jointly with an adjusted gross income of $76,500 or less. These thresholds are subject to change in subsequent tax years.
- Freelance Expenses: Self-employed individuals may qualify for deductions on work-related expenses like industry subscriptions and office supplies.
- Charitable Deductions: Donations made to alma maters or favorite charities are generally deductible if itemizing taxes.
Step #5
The usual due date for filing taxes in New York is April 15th of the year.
Hence if your tax documents have arrived in January or February, take the next two months to plan your returns. Most tax preparation services in NYC recommend filing taxes earlier than later, since the quicker you file your returns the better your chances of avoiding tax-related identity thefts (a crime that is on the rise).
Moreover, you can get your refunds faster if you pay your income tax returns earlier, but the beginning of April each year.
Step #6
Finally to conclude there are several ways and options available for preparing and filing taxes in New York.
For this, you can use the IRS online form, use tax preparation software, or if you think you need expert advice or one-on-one help from any tax expert, ensure you work with someone you can trust as you will be giving this person access to a lot of sensitive personal information, so choose a tax professional carefully.
Conclusion
Hence, if you are looking for tax preparation services in NYC you can consult Fortune Builder LLC (formed in 2022).
We are primarily a tax preparation company, but we provide so much more. business development to personal financial growth, we at Fortune Builder LLC want to help you take hold of your financial life.
