For many, the painstaking, arduous task of tax planning is something they dread all year. What’s more, the dread it felt year after year, as though somehow there may have been a pleasant change that has occurred in the intermittent 364 days to remedy the process. Tax season, it seems, always carries some woes.
According to many CPAs and other tax preparers, one item that seems to come up in conversation when it comes to the vexing nature of taxes is that people are just not sure what they entirety of their taxes is used for in the first place. In other words, many people are generally saying, “Where exactly is my money going?”
While this list may not answer that question entirely, these tax planning facts may give a bit more of a peak behind the proverbial curtain that is taxation in this country:
1. Technology is King – The advent of the internet in tax preparation has allowed for individuals to file their taxes via e-filing, a process that accounts for nearly 90% of filed tax returns.
2. Call In the Professionals – Even with so many tax returns done via e-file, nearly 60% of tax returns are done by tax preparers. Those with slightly more complex cases find that having a tax professional handle their returns is easier. Also, even if the return is simple, some people just want to be sure they get all they can in their refund.
3. One for the Readers – If you’re a fan of reading and the written word as a whole, you will find that the tax code in the United States comes in at nearly four million words. It is the complicated nature of the tax code that accounts for the most worry according to tax preparers.
4. Behold the Numbers – As the years have gone by, it is astounding to think that the expediency of the IRS to get refunds dispersed has been so stellar. In a given year, they receive nearly 150 million individual tax returns.
5. Head West – Once a call to the adventurous to find their fortune in an untamed part of the country, California, per tax return breakdowns, accounts for more millionaires than any other state in the United States. Given the tech and entertainment industries make their homes in the state, it’s no wonder that serious money abounds in The Golden State.
Be sure to take the time to find what the best plan will be for preparing your tax returns. In many cases, hiring a certified personal accountant may be the ideal manner in which to prepare one’s taxes as they are well-versed in the practice & can provide invaluable feedback regarding your financial well-being.