Chicago Tax Return
The IRS is waiting for businesses to mess up on their taxes, so they can charge them outrageous penalties. Don’t let yourself fall victim!
If you want to put together a good Chicago tax return, you need to have the right strategy.
Not only will it make the process easier, but it will also keep you from missing important information that could result in penalties.
Gathering Income Information
You should have received any income information by the end of January, and the forms you receive will depend on the type of income. Look them over carefully to make sure the information is correct.
Here is a list of the common forms used for reporting income:
- Form W-2 for any income you earned from a job
- Form SSA-1099 for Social Security benefits
- Other 1099 forms for contract work, dividends, and cancellation of debt
- Form W-2G for gambling income
All of these forms are related to money you’ve earned throughout the year.
Many business (and even some personal) expenses can be deducted on your Chicago tax return, which can reduce your taxable income.
You must not only know which ones are deductible, but you must also know the difference between itemized and standard deductions.
An itemized deduction can sometimes give you more of a write-off, but the only way to know for sure is to compare the two. That’s why you need to keep good records. Save any receipts, invoices, and other documents attached to each transaction, so you can maximize your deductions at the end of the year.
Medical costs that were not covered by your health insurance can also be deducted on your tax return. The same thing is true for property taxes and any job-related or investment-related expense.
Charitable contributions can be written off on your return, but you will need a record of each transaction in order to do so. If you made a contribution of $250 or more, you need a written statement of the amount and that you didn’t receive anything in return (except for a “token item”). If you don’t have this statement, you will need to contact the charity and ask for it.
Besides any income and expense information, you will also need some personal information for your tax return. You will need your Social Security number, as well as those of your dependents. You will also need the addresses of any of the following:
- Place of residence
- Vacation homes
- Rental properties
Moving dates, information about properties you’ve bought and sold, and expenses attached to them will also be needed.
Changing Tax Regulations
Tax laws and regulations can change, and you need to be prepared for them. Taking this step will keep you from getting caught off guard, and it will keep you from paying penalties that will add to your tax liability.
The Affordable Care Act brought a lot of new tax regulations, and it even changed some of the existing ones. Still, tax regulations can change from year to year. So, be sure to talk to a tax professional about what you may need to know for the coming tax season.
Help Preparing a Chicago Tax Return
Being an accountant today involves being proactive. The business world is faster than it has ever been before. Money is flowing into certain industries, and regulatory authorities won’t stop implementing new policy changes that can affect the accounting process.
The high demand from accountants is why we’re selective on who we hire. We can help you file a Chicago tax return, and we provide cutting-edge accounting services. We also want to continue being one of the firms to set the standards in the industry.
Here are some of the tax services we offer:
- Electronic filing and payments
- Federal, state, and local returns
- Payroll tax reporting and payments
- Sales tax reports
- Tax planning
Because of our experience in taxation, we offer many other tax services as well, but these are some of the more common ones for which our clients have asked.
If you want more information about how we can help you file a Chicago tax return, get in touch with us today!