In this video, you will learn about individual tax preparation. This can be a particularly challenging topic and requires a lot of attention to detail. When learning about tax preparation, be sure to give yourself time to actually absorb the knowledge. There are three milestones for preparing taxes as a taxpayer.
The first milestone is to learn tax law. Tax law is a huge part of preparing taxes. The types of income that your client might receive that are taxable such as personal income, properties, and assets. You have to first understand this. Next, you want to learn about tax deductions. A tax reduction lowers a taxpayer’s dues. Charities qualify as itemized deductions. You also want to understand credits. Some credits you want to learn are nonrefundable credits and refundable credits. Education credits are not refundable credit. It is important to know the difference between all of these. You want to understand all of these tax types. The other thing you want to learn is the filing status of their residence. Filing jointly, married filing separate, head of household, etc are all examples of filing statuses. By understanding these, it is easier to understand taxes that are owed to the government.