United States - Central Illinois/Lexington
We offer accurate Tax Return Preparation for Individuals and Sole Proprietors.
Do you need to amend a return or file prior year returns? We can help. Our rates are reasonable and we offer a free consultation.
Authorized IRS E-File Provider and "Designated as a Registered Tax Return Preparer by the IRS."
Can you tell us about Tax Brackets?
The Federal tax system is progressive. What this means for most taxpayers, is that their income will be taxed at more than one percentage rate. Most taxpayers do not know what their tax bracket is because portions of their income are taxed at different rates. The top portion of their income will be at a higher rate and this is called the marginal tax rate. Another way to understand the marginal tax rate is that it is the percentage a taxpayer will pay on the next dollar that they earn.
Here is an example of a single taxpayer with an income of $44,000: The first $10,150 would not be taxed since they could take a standard deduction of $6,200 and one exemption of $3,950. The next $9,075 would be taxed at 10% and the remaining $24,775 would be taxed at 15%.
Any information about the tax act?
The Federal government has enacted legislation relating to taxes throughout the last 150 years. Initially an income tax was legislated to fund the civil war in the early 1860s. This did not last very long and did not affect very many citizens. Some of the first few attempts to enact an income tax involved a flat tax. A significant Act relating to income tax took place in 1939, when Congress enacted the Internal Revenue code of 1939. Since that time there have been several changes and reforms.
What Tips should people know about Tax?
If you use your personal vehicle for business, as an independent contractor or as an employee, you should maintain a mileage log. For tax year 2015 you can deduct 56 cents per mile.
If you are employed, you should receive your W-2 from your employer no later than January 31.
Who are your targeting with your services?
We provide services for all ages of taxpayers. Most of our clients reside in Lexington, Chenoa and Towanda, Illinois and surrounding towns. We also serve some clients that live in other states. In these cases, we receive tax documents by mail, FAX and email.
Why do people struggle to manage their finances?
If people struggle with their finances it is often a lack of planning and budgeting. People should budget money for personal savings even if it is a small amount. High interest credit cards have led many into bankruptcy. The opposite of this is earning compound interest on your investments.