Individual Tax Preparation in Phoenix, Arizona
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Welcome to Singer Tax & Accounting, PC, where we provide personal income tax services in Phoenix for individuals seeking State and Federal tax returns. Furthermore, we’ll accurately calculate taxes owed and negotiate with the IRS in case of audit on your behalf. Please continue reading to learn more about our individual tax preparation services.
- Tax law is extensive and taxes can be daunting for the average person
- You want your taxes to be accurate
- You want to be sure you get all the deductions allowable by law
- You want someone who will stand behind their work and support you if the IRS has any questions
- You want someone who is ON YOUR SIDE
- Singer Tax & Accounting, PC has been in business for over 40 years
- Estate and trust tax preparation
- Yearly organizer to serve as a template from year-to-year, so that you can provide all the information required easily and quickly
- IRS/state audit representation
- New business Start-ups
Life was simpler before kids. We could file our own taxes, maybe get a refund. After buying our house and having twins, we needed help. SINGER TAX met with us, explained everything in easy to understand terms, and helped us prepare for future years. And the refund . . . was great.Glenn & Hilory
Harvey and David, my wife was right, we should have used SINGER TAX from the beginning. Thanks for making the transition so easy. The forms were easy to complete and your professionalism was appreciated. Yes, the refund was great too.Paul & Marinna
Federal & State Tax Filing Information for Arizona Taxpayers
General Filing Questions
Once your income is above a certain level, you are required to file a federal income tax return. There are a number of other factors involved too including the source of your income, your filing status, and your age.
Just like with an Arizona tax return, whether or not you need to file a federal tax return will depend on numerous factors – namely income level and filing status.
There are two kinds of exemptions: exemptions for dependents and personal exemptions. You are allowed to claim exemptions for yourself, each person you claim as a dependent, and your spouse. In 2014, you can claim up to $3,950 for each qualifying child, while you and your spouse are also allowed the same amount as a personal exemption.
This is an important factor when calculating taxable income, and this status is defined as the type of tax form an individual will use. It is based on family situation and marital status.
You can claim a qualifying relative or qualifying child as a dependent. Qualifying children must be under the age of 19 or under 24 and a full-time student for five or more months.
There are three personal income tax forms: 1040, 1040A, and 1040EZ. While the EZ form is the most straightforward, it may be worth using a longer form because there are more tax break opportunities.
You can’t claim an exemption for your spouse as your dependent, but you can claim a personal exemption. To claim a personal exemption for your spouse, you must meet a host of requirements. For example, you must have been married on the last day of the tax year.
Typically, a decedent’s tax return is completed in the same manner as when they were alive. All income to their time of death must be reported, and the credits and deductions the deceased was entitled to can be claimed.
The amount of the standard deduction you will receive depends on the status you qualify for. In 2014, single taxpayers who file separate returns can claim a standard deduction of $6,200; this amount also applies to married couples who file separately. If you are married and are filing jointly, the standard deduction doubles to $12,400, while those filing as head of household can claim $9,100.
You can deduct contributions to charities. The IRS has a list of charities that qualify and also has maximum amounts that can be deducted. As of 2014, the limit is 30 percent of your adjusted gross income (AGI) for private organization donations, while public charities have a deductibility limitation of 50 percent.
There are a variety of home-related expenses you can deduct, including home mortgage interest payments, mortgage points, and real estate taxes. Certain types of home improvements could also lower your tax obligation when you sell your home. Projects such as adding an addition may qualify, for example.
In July 2013, the threshold for qualified dental and medical expenses was raised to 10 percent of your adjusted gross income. This threshold remains at 7.5 percent until the end of 2016 if you are married and at least one spouse is 65 or over.
The IRS has two basic rules. The distance test requires your new home to be at least 50 miles farther away from your work location than your old home. The time test requires you to have had 39 weeks of full-time employment in the 12 months following the move. If you don’t meet the time test requirement after believing you would, you can complete Form 1040X to amend your tax return.
You could qualify for a deduction of up to $2,500 on your student loan interest. You must meet a number of criteria, including having a modified adjusted gross income of under $80,000 or $160,000 if filing jointly.
Losses incurred through gambling are tax-deductible but only to the extent of your winnings (you can only claim $5,000 if your winnings are $5,000 and your losses are $20,000, for example). You need to be eligible to itemize your deductions, and you can’t claim any tax relief if you claim a standard deduction. You will need to produce documentation to prove your losses, such as Form 5754, Form W-2G, credit records, and wagering tickets.
Each year, taxpayers miss miscellaneous deductions on Schedule A. In order to qualify, your miscellaneous deductions must be more than 2 percent of your adjusted gross income, and even then, you only receive any amount above 2 percent. So if your AGI is $100,000 a year and you have miscellaneous expenses of $3,000, you only receive $1,000 in tax deductions, as the first $2,000 does not count.
To receive a child tax credit you must meet the criteria set forth by the IRS. Each child under 17 that qualifies will allow for up to $1,000 in credit.
Just about every taxpayer gets to take advantage of the Making Work Pay credit, with $400 for single filers and $800 for joint filers. The Government Retiree Credit is for government workers who receive a pension for work not covered by Social Security.
If over 65 years of age, you may be eligible for a tax credit! You must also have an AGI of $17,500 if single or $25,000 if filing jointly. If both spouses are eligible, you may receive a $25,000 credit.
Education credits include the American Opportunity Credit and the Lifetime Learning Credit; with just about everyone who makes $63,000 per year or less being eligible or $127,000 per year or less if married.
Types of Tax Credits
Refundable tax credits can actually reduce your tax liability below $0, which mean that you, the taxpayer, will be rewarded with a refund. Continue reading to see the types of tax credits that are refundable.
Unlike a refundable credit, non-refundable credits will not provide the tax payer with a refund if their tax liability goes below $0. See which tax credits are non-refundable by selecting ‘read more’.
Forms of Taxable Income
The following are several common forms of taxable income, which can also include capital gains, discounts, dividends, jury duty fees, punitive damages, and much more. When in doubt, talk to a reputable accounting firm to find out what should be declared as taxable income.
Both of these forms of income are taxable and they can be calculated by using the IRS Form SSA-1099, which will let the taxpayer know which of three levels of income they fall into.
Income earned through a pension or annuity is taxable; however, you may not have to pay taxes on the entire amount. They are fully taxable if you have no investment in the contract due to not contributing to the pension or annuity.
Foreclosure or a restructuring loan on your home could qualify you for the Mortgage Forgiveness Debt Relief Act – an exclusion of up to $2 million in debt. This information is calculated using Form 982.
If you win money while gambling, this is considered taxable income. Furthermore, all non-cash winnings must be reported as fair market value. Gambling losses can be deducted, but the amount is based on the total earnings.
Income earned from rental properties is also taxable; however, you can offset the total taxable rental income by deducting the costs of renovating or preparing the property for rent.
If your spouse pays you a regular alimony payment, you must claim this as taxable income. The person making the alimony payment gets to deduct those payments from his/her personal taxes.
If an official lender forgives a debt that you owe to them, you must record the money you initially received as income or the difference between what you borrowed and managed to repay.
Assuming that your retirement income is not generated from a Roth or Roth IRA, you’ll have to pay income tax on the funds. This includes early withdrawals, which can also accompany a stiff penalty – sometimes as much as 10 percent.
If you’re in the service industry and the majority of your income is derived from tips or gratuities, you must claim this income in your taxes. This is not exclusive to cash gifts, but non-cash gifts too, such as tickets to an event or anything else of monetary value.
Singer Tax & Accounting, PC Phoenix, Arizona Office Location
21035 North Cave Creek Road #1, Phoenix, AZ 85024 | Driving Directions
Singer Tax & Accounting, PC
Phoenix, Arizona 85024