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High Five Taxes offers professional tax preparation services so easy to use, they’ll convert even the most staunch DIY tax filer. When debating between DIY tax filing or hiring a tax professional this year, consider the pros and cons of each.
DIY tax preparation is one of the most affordable ways to file taxes. That being said, there have been a lot of changes to tax laws that can affect an individual’s or business owner’s ability to prepare taxes correctly. On top of that, if a taxpayer has multiple tax forms to submit, this can further complicate the DIY tax preparation process.
If taxpayers choose the DIY route, they’ll have to navigate the new tax laws related to stimulus checks, unemployment compensation, changes to tax brackets, and retirement distribution rules — just to name a few.
In lieu of DIY filing, taxpayers can hire a tax professional to assist them with filing. However, this comes with its own challenges. Depending on the tax prep company a person hires, they could be spending significantly more money based on their state, the tax forms they need...more
AUSTIN, TX, JANUARY 6TH, 2021 -- When filing income taxes for 2020, High Five Taxes is available for individuals and businesses to help prevent them from overpaying for tax return prep services. The cost of these services varies by state, so it’s essential for taxpayers to research the rates of fees of hiring a tax preparation company in their area.
About 81% of all tax preparation companies charge a flat fee for their services, regardless of how simple or complex the filing process is. The other 19% of tax preparation companies charge hourly rates, so the amount taxpayers invest in tax preparation will depend on how many forms and documents they need to file.
Not only does tax preparation cost vary by company, but it also varies by state. Individuals filing non-itemized 1040 and state returns can pay anywhere from approximately $125 to $373, while individuals filing itemized and state returns can pay anywhere from approximately $158 to $483 for tax preparation. Sole proprietors filing 1040 with a Schedule C can expect to pay anywhere from...more
High Five Taxes
With the 2020 tax season swiftly approaching, taxpayers will soon be receiving their tax returns to file. Just as importantly, new tax laws for 2021 will soon go into effect. From tax bracket rates to standard deduction amounts, High Five Taxes is here to help individuals and businesses navigate the information. Learn more about the new tax laws for 2021, and get in touch with our team to use our income tax preparation services.
While there are still seven tax brackets in 2021, the breakdown of those rates has changed. Tax rates in 2021 will be 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top six brackets include a flat tax amount that varies from $995 to $168,993.50 depending on whether or not a taxpayer is filing individually, jointly, separately, or as the head of household.
Standard Deduction Amounts
Standard deduction amounts will increase for all filing...more
High Five Taxes
With the implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act during 2019, businesses and individuals will experience changes to the tax filing process for 2020. There are several changes to be mindful of, but High Five Taxes highlights five key changes to help individuals and businesses begin planning.
Between January 1, 2020, and December 30, 2020, the CARES Act allows individuals affected by COVID-19 to withdraw up to $100,000 from retirement funds without having to pay the additional 10% tax. Instead, you can elect for the income to be taxed ratably across 2020, 2021, and 2022 unless you decide to recontribute back to the retirement accounts.
Changes to Charitable Contributions
The CARES Act will also change the percentage of charitable contributions you can claim as a deduction on your 2020 tax filing. Instead of capping individuals at 60% of their Adjusted Gross Income (AGI) for charitable contribution deductions, individuals can claim up to 100% of their AGI if...more