Tax Preparation

Your tax bracket is based on IRS tax tables and depends on your filing status—single, married filing jointly or separately, or head of household.

To find your bracket, calculate your taxable income by adding up all taxable earnings, such as wages, bonuses, freelance income, certain alimony, and interest. Then subtract pre-tax contributions like 401(k) or HSA contributions, along with the standard or itemized deduction.

The remaining amount is your taxable income and determines which tax bracket you fall into. Additional adjustments may apply based on your individual situation.

Use folders or apps to sort documents by category: income, deductions, credits, business expenses, etc.

It depends on which results in a lower tax bill. A tax preparer or software can help you compare.

Common documents include:

• W-2s from employers
• 1099 forms for other income
• Mortgage interest statements
• Student loan interest statements
• Charitable donation receipts
• Last year’s tax return (for reference)

A tax deduction reduces your taxable income; a tax credit reduces your actual tax owed.

If neither you nor your spouse is covered by a retirement plan at work, your deduction is allowed in full.

For contributions to a traditional IRA, the amount you can deduct may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Roth IRA contributions aren’t deductible.

1099-NEC is for nonemployee compensation (contractors); 1099-MISC is for other
miscellaneous income.