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People who are close to reaching a new tax bracket may suddenly be worried that because they're making more money, they're going to be hit with more taxes than ever. They may even wonder if they would have been better off not getting that raise or promotion. But only the income exceeding the tax bracket threshold is taxed at a higher rate.
Tax preparation is a great home-based business for many types of people. If you enjoy working with people and computers, tax prep could be for you.
There are three factors you should consider when determining whether you need to file a tax return: your age, your filing status, and your income. Once you reach a certain income level, the law generally requires you to file taxes.
To become an authorized e-file provider there are three steps: 1) Create an IRS e-Services Account, 2) Submit your application, and 3) Pass a suitability check. There is no fee and the process takes up to 45 days.
Before 2012, low-income tax filers who used paid preparers could get their tax refunds faster with a refund anticipation loan (RAL). RALs were high-cost immediate cash loans from private lenders, backed by the tax refunds the borrowers claimed on their prepared returns (Theodos et al. 2011). RALs proliferated after 1999 when the IRS reinstituted the debt indicator program, which disclosed whether a tax refund would be redirected by the IRS to pay debts.
A digital tax-prep tool is the most popular option among tax filers, with more than a third (34.5 percent) of tax filers saying this is the method they use to file taxes. Tax-filing software is a popular option because of the lower costs associated with filing digitally as well as the ease of using a program to automate calculations and deductions. Filing fees typically start as low as $0 or $10 to file federal and state returns using a basic 1040 form. The IRS also offers a free tax filing service called Free File, which is available to taxpayers who make $62,000 or less annually
Starting a tax preparation business can be a great idea if you want to be an entrepreneur. The amount of money you make will depend on both your market and on how good you are at attracting new clients.
Starting a home-based tax business can be done without very much money. Since you will have very little overhead, you can charge less than your competition and still make a good profit.
In general, tax preparers are not required to have a specific educational background other than a high school diploma, but there are many training programs offered to learn what they need to know to prepare tax returns.
Unless you’ve been living under a rock, you’ve heard that there was a new tax bill that was passed by the Trump administration. And while the tax bill has been the topic of lengthy discussion and debate, few people can point to how it will affect them personally during this tax season.
H&R Block is widely considered to be the company that founded the US tax industry as we know it. They’re one of the largest and most well-known tax service providers in the world. It’s estimated that they’ve prepared more than 720 million tax returns since 1955.