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Tax preparation in the United States information


Tax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services. Tax preparation may also be done by a licensed professional such as an attorney, certified public accountant or enrolled agent, or by an unlicensed tax preparation business. Because United States income tax laws are considered to be complicated, many taxpayers seek outside assistance with taxes (53.5% of individual tax returns in 2016 were filed by paid preparers).[1]

Some states have licensing requirements for anyone who prepares tax returns for a fee and some for fee-based preparation of state tax returns only. Commercial tax preparation software, such as TurboTax, is widely used by individuals preparing their own tax returns. The Free File Alliance provides free tax preparation software for individuals with less than $72,000 of adjusted gross income for tax year 2020. People who make more than $72,000 can use Free File Fillable Forms, electronic versions of U.S. Internal Revenue Service (IRS) paper forms.

  1. ^ "SOI Tax Stats — Tax Stats-at-a-Glance | Internal Revenue Service".

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Tax preparation in the United States

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Taxation in the United States

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The United States has separate federal, state, and local governments with taxes imposed at each of these levels. Taxes are levied on income, payroll, property...

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Income tax in the United States

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The United States federal government and most state governments impose an income tax. They are determined by applying a tax rate, which may increase as...

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Corporate tax in the United States

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Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as...

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Liberty Tax

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is the third largest institutional tax preparation service provider in the United States and second largest in Canada. The company began in Canada in 1997...

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Sales taxes in the United States

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Sales taxes in the United States are taxes placed on the sale or lease of goods and services in the United States. Sales tax is governed at the state...

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Property tax in the United States

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local governments in the United States impose a property tax, also known as a millage rate, as a principal source of revenue. This tax may be imposed on...

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Credit Karma

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Credit Karma Tax, its free United States tax filing service, was announced in December 2016. Credit Karma Tax does not participate in the Free File Alliance...

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Inheritance tax

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tax in the United States.[citation needed] There was a steep increase in the number of countries that implemented inheritance taxes throughout the 19th...

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Americans for Tax Reform

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voted upon. Tax preparation in the United States is different from that of many other countries in the world, in that the United States does not provide...

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Payroll tax

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income (payroll taxes of the first type), under a system known as pay-as-you-go (PAYG). The individual states impose payroll taxes of the second type. All...

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Free File Alliance

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The Free File Alliance is a group of tax preparation companies which operate a public-private partnership with the Internal Revenue Service (IRS) to provide...

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Tax returns in the United States

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Tax returns in the United States are reports filed with the Internal Revenue Service (IRS) or with the state or local tax collection agency (California...

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Capital gains tax

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capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks...

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Earned income tax credit

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The United States federal earned income tax credit or earned income credit (EITC or EIC) is a refundable tax credit for low- to moderate-income working...

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Tax reform

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Estate Tax (ASSET). Various proposals have been put forth for tax simplification in the United States, including the FairTax and various flat tax plans...

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Taxation in the United Kingdom

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not taxed. The schedules were: Schedule A (tax on income from United Kingdom land) Schedule B (tax on commercial occupation of land) Schedule C (tax on...

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IRS tax forms

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The United States Internal Revenue Service (IRS) uses forms for taxpayers and tax-exempt organizations to report financial information, such as to report...

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Tax avoidance

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Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that...

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Tax Cuts and Jobs Act

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Public Law (United States) 115–97 (text) (PDF), is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and...

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Tax evasion

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The U.S. Tax Reform Act of 1986 appears to have reduced tax evasion in the United States. In a 2017 study Alstadsæter et al. concluded based on random...

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Santa Barbara Tax Products Group

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partnering tax professionals including Jackson Hewitt Tax Service, and online tax preparation software providers including Turbo Tax. Santa Barbara Tax Products...

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Socioeconomic mobility in the United States

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the path for black boys is steeper. —The Economist, 2020 Socioeconomic mobility in the United States refers to the upward or downward movement of Americans...

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Direct tax

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However, in the United States, the term has special constitutional significance because of a provision in the U.S. Constitution that any direct taxes imposed...

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Education in the United States

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In the United States, education is provided in public and private schools and by individuals through homeschooling. State governments set overall educational...

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Tax protester history in the United States

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tax protester, in the United States, is a person who denies that he or she owes a tax based on the belief that the Constitution of the United States,...

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Native Americans in the United States

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obtained it. This emptied the "Indians not taxed" category established by the United States Constitution, allowed Natives to vote in state and federal elections...

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Ad valorem tax

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of a transaction, as in the case of a sales tax or value-added tax (VAT). An ad valorem tax may also be imposed annually, as in the case of a real or personal...

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