Vanni Foundation >

Nesso Tax Offers Help with Personal Tax Returns in Plantsville, CT

Every U.S. citizen and permanent resident is responsible for paying taxes and complying with the federal tax code. A big part of this is filing an individual tax return. However, sorting through the paperwork and understanding the process can be overwhelming for many. That’s why at Nesso Tax, we offer help with individual tax returns in Plantsville, CT, so that taxpayers can get the most out of their returns. Our years of experience in the industry and commitment to excellence ensure the highest quality and accuracy. Please fill out our form today to schedule a consultation. We’ll be your trusted partner in all your tax matters.

Offers Help with Personal Tax Returns in Plantsville, CT

What Is an Individual Tax Return?

An individual tax return is a filing with the Internal Revenue Service (IRS) that reflects your income, expenses, taxes paid, deductions, and other information for a specific period, typically the previous year. It’s used to estimate how much you owe or will be refunded by the government as part of your federal tax obligation. Knowing what an individual tax return entails and how to complete it accurately is essential, as errors can result in fines or other penalties. At Nesso Tax, our CPAs are here to guide you through this process.

It’s important to note that filing a tax return isn’t as simple as completing a few documents. It requires a comprehensive understanding of the tax code, financial terminology, and the types of forms.

Who Must File an Individual Tax Return?

Contrary to what some may think, not just employees with a salary must file an individual tax return. You may need to file if you:

  • Are self-employed, have rental income, or made money through investments.
  • Received certain types of benefits from the government (such as Social Security).
  • Gave away or sold any property.
  • Owe taxes for past years.
  • Are claimed as a dependent by another taxpayer.

Even when you aren’t required to file an individual tax return, you may still want to do so, as you might be able to get money back from the government.

Benefits of Filing a Tax Return

Receiving a refund is the most obvious benefit of filing an individual tax return. However, there are several other reasons to complete one:

  • Avoid Interest and Penalties: The IRS may impose interest and penalties for late filing or underpayment of taxes. Filing an individual tax return on time is the best way to avoid these consequences.
  • Apply for Financial Aid: If you have a child heading off to college, they may need to submit financial documentation as part of their application. You can transfer information from your tax return using the IRS Data Retrieval Tool (DRT) to make the process easier.
  • Build Social Security Benefits: Your earnings from the past are the basis of your Social Security benefits. A tax return provides a record of your income, which helps to ensure you receive the correct amount.
  • Get an Accurate Picture of Your Income: By filing a tax return, you can better comprehend your financial situation. Lenders, for example, may ask for information from a tax return to determine the amount you can borrow and the interest rate they can offer.
  • Get Confidence: Knowing that you comply with the law and meet all your tax obligations can give you confidence and peace of mind.

Understanding the Individual Tax Return

The individual tax return is one of many forms used to report taxable income in the U.S. Businesses, corporations, and nonprofits must file a specific variation of this return. On the other hand, individual taxpayers use a version of the IRS Form 1040 or Form 1040-SR (for seniors). Once complete, the taxpayer must submit the return to the IRS before the deadline or opt for an extension if needed. Additional documents may be required in some cases; for example, when itemizing deductions instead of taking the standard deduction. We’ll explore the various forms available in the next section.

Every U.S. state has a taxing authority, even those without an income tax. The agency is responsible for collecting state taxes and levies every year. If the state taxes income, taxpayers must also submit a state tax return to the relevant authority. In Connecticut, this is the Department of Revenue Services. Most state tax returns assess and calculate any amount due or refundable based on the information contained in the federal tax return.

Everything about Individual Tax Return Forms and Other Forms

As we mentioned, the main form used by individual taxpayers is the IRS Form 1040 (or 1040-SR). They may only need to submit these forms and none of the accompanying schedules. However, if their tax situation is complex, or they wish to itemize deductions, they must complete and attach additional documents. Several different schedules exist, including the following:

  • Schedule A collects everything related to itemized deductions, such as medical expenses, mortgage interest, and charitable contributions that exceed the standard deduction amount.
  • Schedule B covers capital gains and dividend payments. The taxpayer must complete the form if they received $1,500 or more from these sources.
  • Schedule C is for self-employment income. It captures information about business earnings and expenses, allowing them to calculate the net profit or loss. They must then add the figure to their 1040 form as other income.
  • Schedule D is where taxpayers report capital gains and losses. Items typically included are the sale of stocks, real estate, and certain other assets. The form separates short-term gains (from assets held for one year or less) from long-term gains (held for more than one year). The latter may be subject to lower tax rates.
  • Schedule SE reports self-employment taxes. Unlike Schedule C, it doesn’t calculate a net profit or loss. Instead, it computes the self-employment tax due.
  • Form 1040 also requests personal information, such as the taxpayer’s name, address, Social Security number, and filing status.

In addition to Form 1040, the Wage and Tax Statement, or Form W-2, is also essential for individuals. Employers must provide employees with a copy of this document containing their earnings from the prior year and the amount of taxes withheld. The taxpayer can then use this information to complete their tax return. Other relevant forms include 1098 (for mortgage interest payments), the 1099 series (to report income that isn’t from employment), and 4868 (for filing extensions).

About Tax Planning and How You Can Benefit from It

Tax planning is analyzing your financial situation and taking calculated steps to minimize tax liabilities. It involves more than simply filing returns when the deadline arrives; it’s a year-round strategy, both proactive and reactive. The goal is to maximize deductions, credits, and other benefits while predicting future tax liabilities. For this reason, tax planning requires a comprehensive understanding of the federal and state tax codes.

This type of planning can start with the basics: ensuring you know which forms to use and when, reporting all income and deductions accurately, and taking advantage of tax credits. However, there are also more complex strategies. For example:

  • Using accelerated depreciation methods to create deductions more quickly.
  • Taking gains in one year and losses in high-earning years, or vice versa.
  • Investing in retirement accounts and other tax-advantaged accounts.
  • Moving investments into different asset classes.
  • Placing assets in the right kinds of trusts.
  • And more.

Of course, these strategies aren’t ideal for everyone; they depend on the taxpayer’s unique needs and goals. It’s essential to seek professional advice before attempting any of them. Fortunately, Nesso Tax can help with this. Our tax planners in Plantsville use their experience and knowledge to develop custom strategies and guide you in the right direction.

How Nesso Tax Can Help with Tax Return Preparation in Plantsville

  • Individual Tax Preparation. We can help you prepare your return accurately and quickly. Our team will identify all available deductions, credits, and other benefits to maximize your refund.
  • Individual Tax Planning. Want to lower your overall tax burden? We can review your financial situation and suggest strategies to do just that. You’ll be prepared for the upcoming tax season and beyond.
  • Trust Return Preparation. Trusts are an excellent tool for inheritance planning, but they come with their tax implications. Our tax professionals in Plantsville can help you navigate the process and guarantee compliance with the law.
  • Estate Return Preparation. When someone passes away, their loved ones must complete an estate tax return and file it within the required period. You can rely on Nesso Tax to manage this complicated process, saving you time and energy.

Once you connect with us, we’ll analyze your case and suggest the most suitable service. Then, we’ll collect and submit all the documentation so you can benefit from a stress-free process and a satisfactory outcome.

Make Individual Tax Returns Easier with Nesso Tax

At Nesso Tax, our mission is to provide top-notch tax services in Plantsville, CT. We specialize in personal tax returns, meaning we can handle all the forms associated with the filing. Our experienced CPA team will help you complete Form 1040 and any other documents required for your state and federal taxes. However, our services don’t stop there – you’ll also receive personalized advice about planning for future taxes and minimizing liabilities as much as possible. If you ever need assistance understanding the language used on IRS forms or have questions about deductions or credits available, we’re here to help. Contact the Nesso Group today to get started!

Call Now Button