If numbers aren’t your thing, or if your understanding of taxes is minimal—don’t worry because you are not alone! Below are answers to a few common tax questions, to help you gain a better understanding of some of the basics.
How Often Do Tax Codes Change?
Tax codes change each and every year—and are sometimes changed within the calendar year we are already in too. The current IRS Tax Code is over 73,000 pages long—and there are over 1,000 different tax forms in total. While not all tax codes will apply to you, it is essential to understand the codes that do. This is why many choose to work with a CPA to file their personal taxes.
What Is A CPA?
CPA is short for Certified Public Accountant. CPAs are licensed tax professionals who are required to have in-depth knowledge of both State and Federal tax codes. When you are searching for someone to help you prepare and file your annual taxes, it is important to understand if they are a “tax preparer” or a CPA. Tax preparers have a basic understanding of taxes, but are certainly not licensed tax experts. By turning to a CPA for your annual tax needs, you can rest assured that your taxes are properly prepared—and that you are aware of all applicable tax codes, meaning you can ensure all credits are accurately accounted for.
How Can You Determine If You Are Going To Receive A Refund, Or If You Will Be Required To Pay More Taxes?
There are many factors that determine which tax codes, credits, and deductions apply to you. Some of which include:
- Your salary
- If you are in school
- If you are the Head of Household
- How much you withhold each pay cycle
- How many dependents you have
- If you own real estate
- Your personal investments
- If you are retired
The factors above are the most common when it comes to you moving from someone who receives a refund one year, and have to pay the next—or vice-versa.
Working with a CPA in Roanoke, VA will help you to create a solid tax plan to ensure you are not paying more than you are required—and that enough money is set aside if required.