FAQs

Tax Return & Bookkeeping FAQs

Every year, tax season rolls around and you’re rushing to get everything together in order to file. While it may seem like a very overwhelming process, you don’t have to do it alone. At National Tax Service, we’re proud to provide innovative tax preparation services to growing families, working professionals, and local businesses across Columbia, SC and the surrounding regions. Whether you’re interested in filing for this year's tax return, require bookkeeping/payroll services, or need tax audit help, our team has all the proper knowledge and tools to assist you. To learn more, browse some of our FAQs below. 

  • What tax deductions do I qualify for?

    Most people qualify for either the itemized or standard tax deductions. These are often the two largest types of deductions available to you. Remember, every person and business is unique. It depends on factors such as income, revenue, property taxes, payroll expenses, mortgage payments, and the birth of a child, among many other factors.

  • What is the difference between a tax credit and a tax deduction?

    Generally, a tax credit is preferable. Credits reduce your tax burden dollar for dollar while deductions reduce your taxable income. For example, a $500 tax credit means that you owe $500 less dollars in taxes. Meanwhile, a deduction of $500 means that you may have an income of $50,5000 but only $50,000 is taxable. This will only save you a fraction of that $500 when compared to a credit.

  • Why should I hire a bookkeeper?

    Accurate bookkeeping is essential to any profitable and well-functioning business. It is needed to ensure that all financial transactions are properly and accurately recorded. This ensures that you have all the appropriate documentation for your tax returns. However, this can be challenging and time-consuming. A bookkeeper can take this time-consuming task off your hands, allowing you to focus on generating more revenue for the business. A professional bookkeeper can also do things like invoice customers, generate reports, and pay vendors.

     


  • How long does it take to file tax returns?

    The IRS estimates that it takes an average of 13 hours for most people to file their taxes. However, the exact time will depend on factors such as your documentation preparedness, familiarity with the process, and tax situation.

  • Is the standard deduction better than itemized deductions?

    If your total itemized deductions are more than the standard deduction, you should take the itemized deduction route. However, if your itemized deductions are less than the standard deduction, you should use the standard deduction.

  • What happens if I am audited by the IRS?

    Most often, auditors determine that the changes in your taxes are caused by an error. When this happens, you must pay the additional taxes that you owe by the due date. If the error in your taxes is significant, auditors may suspect tax fraud which can result in criminal charges and stiff penalties.

  • What is a 1099 form?

    A 1099 form is a tax document that has information about payments that you have received from a business or entity that is not your employer. The payer is responsible for filling out the 1099 form and sending a copy to you and the IRS.

Contact Us for Help with Filing Your Tax Return

If you have any additional questions, please feel free to contact one of our tax preparation experts. No matter your needs, we will work with you through each step of the way to properly navigate the complexities of filing your federal and state income tax return.