TAX RETURN CASE
2017 Federal income tax return
With regard to the 2017 federal income tax return, what is known is the fact that the IRS which is readily available in the government program provides eligible taxpayer with a dozen of options for the brand-name products. In other words, the free file used is regarded as being a form of partnership which exists in commercial partners who have the ability of offering a number of free-brand-name software to families and individuals. At most, seventy percent of the taxpayers are entitled to the IRS free file (2017 Tax Filing Season Opens Today, 2017).
Nevertheless, the tax-free personal allowances-the amount a person can ear before settling any income tax is amounted to a certain percentage. This implies that the benefits for the taxpayers are likely to amounts to $1,400 per month for the coming year. The impact of an increase in wages is that it has the possibility of driving up the taxable earning threshold of the taxpayers. Although a large percentage of the workers are anticipated to be paying much into the social security, about 12 million will encounter high taxes. According to the federal income tax administration, this will be brought about by the increased ceiling (2017 Federal Income Tax: How Much Will You Owe?, 2017).
Financial suggestions for 2018 that would benefit the Merritt’s from a tax point
The financial suggestions of the federal tax income suggest that the human resource block in the Merritt office is something which has the potential of meeting the requirements of the tax professionals. The main reason for considering is because they are the ones who have the capacity of handing all the tax preparation needs of their organization. Despite that, it assists in determining their taxes, the truth it enables the management authority to find out every tax deductions which are available so that in return they can get the most from their tax returns.
Additionally, what is perceived to have the potential of assisting the Merritt from the tax point is the alternative minimum tax. For instance, in case the alternative minimum tax could have decreased, it implies that the unreported social security and Medicare could be able to take the credit in case the adjusted gross is to be decreased too (2017 Tax Filing Season Opens Today, 2017).
- The implications of their stated goals if they were to take your suggestions both negative and positive
As much as the above objectives are concerned, one of the benefiting factors is that low-income taxpayers and moderate-income taxpayers will have the opportunity of obtaining filing their tax returns for free. In this case, it implies that a large percentage of individuals can assist others in completing their return. Similarly, this will offer the IRS an extra time for detecting as well as preventing any form of fraud (Gerald et al., 2017). Beyond the earned income tax credit (EITC) and the additional child tax credit (ACTC) refunds as well as the additional security safeguards; the truth is that the IRS assists in anticipating the issuing of more of the refunds in less than a month.
Despite that, the only disadvantage of this is that it is impossible for a certain return revenue return to take long before being processed because of the additional reviews it mandates. The reason for that is because the taxpayers are always reminded that the state tax agencies have various refund processing timeframes which keep on varying. Similarly, it is possible for the state to make extra reviews so as to assist in ensuring that their revenues are issued properly. Regardless, of that, the taxpayers should understand that they are required to file their tax returns so as to ensure that they exercise is carried out normally (J.k, 2018).
- Finally, after looking at the information provided in both parts 2 & 3 your final recommendations (summarize) to your clients why you are suggesting the charges that you have recommended.
With regard to the above information, there are a number of things that the taxpayers should take into consideration. The first one entails keeping a record of their tax returns. In other words, the usage of the tax filing software services requires that the adjusted gross income (AGI) to be amounted from the taxpayers’ before-year return o as to assist in verifying their true identity. The reason for that is because the objective of IRS entails working with the state tax agencies as well as the tax industry in addressing tax-related identity theft and/or refund fraud.
Nonetheless, it should be noted that effective protection for the nation and taxpayers’ tax system is one of the remedies of enhancing efficient tax filing season. The importance of this measure is that it will assist in attacking any tax-related identity from various sources. Although many changes might end up becoming invisible to the nation and taxpayers, it will end up assisting the tax and states in providing new protections (Gerald et al., 2017). Conversely, security requirements are what should be taken into consideration because it effectively protects personal information and tax software accounts.
Since the aforementioned computations doesn’t take into account the credits or deductions of an individual, it is important for taxpayers to understand that their main objective is to get as closer as possible to being refunded by the federal government. Other than forcing them to save, there are no any valid reason/s which can make the state government to hold hostage the tax dollars of the taxpayers (Gerald et al., 2017).
References
2017 Federal Income Tax: How Much Will You Owe?. (2017). The Motley Fool. Retrieved 30 November 2017, from https://www.fool.com/taxes/2017/10/28/2017-federal-income-tax-how-much-will-you-owe.aspx
2017 Tax Filing Season Opens Today. (2017). IRS. Retrieved 30 November 2017, from https://www.irs.gov/newsroom/2017-tax-filing-season-opens-today
Gerald, E. W, Steven, G, & Martha, A.B. (2017). Income Tax Fundamentals 2017. Cengage Learning Press
J.k. lasser's your income tax: 2018 : for preparing your 2017 tax return. (2017). John Wiley & Sons Inc.
