Individual Tax Preparation by a Professional Who Reviews Every Line
Individual tax returns appear simple on the surface. however, they can become complicated quickly. Things get tricky when there is a change in your life, such as selling your home, buying a rental property, gaining stock options, inheriting an IRA, or receiving a distribution from a trust. Any of these will affect your tax situation in ways that free DIY tax software won’t understand. Susan takes the time to understand and implement tax saving strategies while maximizing to your benefit.
- CA License # 96754 Since 2007
- Serving Shasta County
- CA License # 96754 Since 2007
- Serving Shasta County
Before switching to Susan
Tax software completes your return. Without Optimizing It
Every major tax platform will produce a technically complete 1040. But does that mean the return has been optimized with your best interests in mind? Not necessarily. What you want to know is if the preparation was correct based on your individual circumstances and if it included all the deductions you were eligible for.
- DIY software doesn’t understand your whole financial picture. It does not know that you sold a rental property in a prior year with a passive loss carryforward, or what your cost basis was on inherited stocks.
- Franchised chains rely on high volume rather than continuity. Your tax preparer at a big chain will complete hundreds of returns per season. They follow a basic corporate checklist to process your return, and will not notice if information is missing.
- Tax preparers who do not hold a valid CPA license cannot act as your representative. If the IRS or California Franchise Tax Board (FTB) sends you a notice or opens an audit, an unlicensed tax preparer is severely limited in their ability to assist you. A licensed CPA can act as your representative at all levels.
Years filing CA returns
In the field since
reviewed by Susan directly
- Forgetting to include Section 121 when selling a primary residence. You’ll pay taxes on as much as $250,000 of the gain that you shouldn’t be paying.
- Not deducting qualified business income (QBI) on self-employment income. You may be missing out on up to a 20% deduction of your QBI, which could lower your tax liability significantly.
- Incorrectly using the cost basis on inherited items. You’ll end up paying too much in capital gains taxes on a stepped-up asset.
- Missing out on rental property depreciation. You’re not required to depreciate this property. However at times it may be beneficial.
Every Form, Schedule, and Line Item You Need
Individual returns can be rather simple or extremely complicated. Susan prepares all types of individual returns from a simple W-2 return to multiple schedule filings where you include self-employment income, investment income, rental income, K-1s, and trust distribution all within the same calendar year.
- Federal Form 1040. All of your wage income, interest income, dividend income, Social Security benefits, retirement benefits, credits and standard deductions or itemized deductions are prepared and electronically filed.
- California Form 540. The state return is filed alongside the federal return. This includes all of the California-specific adjustments, such as the SDI deduction and coordinating any CA credit.
- Schedule C (self-employment). Sole proprietor, freelancer, gig worker and single-member LLCs. All of your SE tax deductions, home office expenses, vehicle expenses and ordinary business expenses will be fully accounted for.
- Schedule D and Form 8949 (capital gains). Sales of stock, cryptocurrency sales, RSUs and ISOs with a basis calculation, long-term or short-term treatment of capital gains, and carry-over losses from the previous year.
- Schedule E (rental income). Gross income & deductions from rental properties; proper depreciation on investment property; passive losses and real estate professional status (if applicable).
- K-1 pass-through income. All income, losses or credits received by an individual shareholder/beneficiary through an S-corp, partnership or trust will be matched up with the entity's return.
- Retirement and IRA distributions. RMDs, Roth conversions, 72(t) payments, inherited IRA distributions, and early withdrawal penalty exceptions.
- Form 1041 (trust and estate returns). Fiduciary income tax returns for estates and trusts, including the Schedule K-1 issued to beneficiaries.
- Prior-year and unfiled returns. Reconstructed from records and filed in sequence to stop penalties from accumulating and restore good standing.
- W-2 employees who have multiple income sources or investments to track from one year to another.
- Self-employed individuals/sole proprietorship businesses filing a Schedule C.
- Rental property owners who need to calculate annual depreciation.
- Individuals with capital gain(s), Restricted Stock Units (RSU’s), Incentive Stock Options (ISOs) or Cryptocurrency transactions that are reportable on tax returns.
- Retired individuals dealing with Required Minimum Distributions (RMDs), converting their retirement plans into Roths and taxing social security benefits.
- Beneficiaries of trusts or estates receiving K-1 income.
- Executors or trustees who need a Form 1041 prepared.
1120-S
1020
1065
990
100S
565
568
Tax situations That Software Gets Wrong
Did you recently go through a major life event? Your individual tax situation likely just got more complicated. There are several tax areas where having a certified public accountant, not just a questionnaire on a software platform, may make a significant difference.
You are not required by law to depreciate rental properties, at times it may be beneficial to do so. Susan will review it with you, as well as, the income earned from rental property plus expenses associated with the rental property. In addition, Susan will review for passive loss restrictions, suspended losses, carry-forwards, and active real estate professional status.
Each time you sell an asset, it is neccessary to have an accurate cost basis in order to limit capital gains. Unfortunately, most brokerage account reports are not easy to understand. All sales reported on FORM 8949 require the proper cost basis. Additionally, Susan will analyze alternative minimum tax implications and cryptocurrency transactions. Should some cost basis not be available, Susan will provide guidance for alternative methods of reporting.
Each of these three categories of retirement planning has its own set of rules and regulations. Susan can assist in calculating the required minimum distribution. She can evaluate the timing and potential tax consequences of any Roth conversions. Susan can assist with compliance regarding the 10-year rule applicable to inherited IRAs. Any early withdrawals should be documented with the reasons why the withdrawal was taken. Any non-deductible IRA contributions, will be entered with all required information via FORM 8606 to ensure the correct basis is used for future distributions.
When a person passes away, it’s possible the assets qualify for the stepped up basis of inherited assets. This would increase their original basis to fair market value at the date of death. Incorrect reporting of basis will result in excess capital gains taxes paid upon subsequent sale of the asset. Proper documentation is essential.
K-1 pass-through income received from partnerships, S-corporations, and trusts requires reconciliation with the entity’s return. Susan will apply all relevant at-risk rules, passive activity limitations, and qualified business income deduction eligibility requirements to each K-1. Should she also prepare your entity return, she will coordinate both returns before submitting them for processing.
Trusts and estates file separate returns (FORM 1041) and can generate K-1s for each beneficiary. Fiduciary income tax returns are required for estates during administration and ongoing trusts. Susan will calculate distributable net income and create a K-1 for each beneficiary when applicable. She can assist in identifying income and expenses in administration and legal to optimize the deductions for the return.
The longer you delay preparing and filing your past due return(s), the larger your total amount of accumulated penalties and interest will become. The process of resolving back taxes is quite simple once understood. Your returns will be reconstructed based on available documents and submitted in order to eliminate further penalty and interest accruals. Should you meet certain criteria, Susan may be able to request penalty abatement.
A Completed Return Is Not Necessarily a Correct One
A licensed CPA like Susan brings something that software simply can’t match: the ability to read your return as a financial document, connect this year to last year, spot what changed, and know what the IRS is likely to look at.
She keeps a record of the prior return to see what's changed. If you added a rental property, converted a traditional IRA to a Roth, or sold a business interest, she will know. The current-year return reflects everything accurately. That continuity catches errors and surfaces opportunities a first-time preparer may overlook.
Every return gets a second read before it goes out. Not because the software made an error, but because context matters: What type of activity is this income? Is this expense categorized correctly? Is this deduction defensible if examined? A preparer who reviews is different from a preparer who just enters and sends off the return.
If a CP2000 notice arrives, the FTB questions a deduction, or an examination opens, Susan can respond on your behalf as your licensed representative. Non-CPA preparers and tax software companies cannot do this.
Susan prepares your return and signs it. The person whose name is on the return is the person who worked on it. If you have any further questions, even after tax season, you can call Susan directly and get a helpful answer.
W-2, interest, dividends, standard or itemized deductions: Priced after a complexity review. Most straightforward returns quoted on the first call.
Adds Schedule C, Schedule E, Schedule D, K-1s, or multiple states: The fee reflects the additional forms. Scope confirmed before work begins.
Fiduciary income tax return: Priced separately based on number of beneficiaries and complexity.
Describe your situation: Get an honest read on complexity and cost before you commit.
HOW TAX PREP WORKS, FROM FIRST CALL TO A FILED RETURN.
Here is what you can expect when filing an individual return:
Describe what happened with your taxes this year. Did you change jobs? Sell a piece of property? Receive a distribution? Rent out a property? Inherit money? She determines whether your return needs to be prepared simply or if there are some complexities involved. Based upon that conversation, she will provide you with a cost estimate and let you know which documents you’ll need to collect.
Once we’ve discussed your return and determined the necessary documentation, you’ll receive a customized checklist of what documents are required to complete your return. You’re only responsible for providing the information that’s applicable to your situation. That way, you won’t be overwhelmed with unnecessary paperwork. Susan is looking for W-2s, 1099s, stock brokerage statements, rental property records, and copies of your prior year’s return(s) so she can compare it with this year’s return.
Using the information you provided, along with the documents you collected, she'll complete your tax return.Then, she’ll cross-check your current return with your previous year’s return to ensure everything matches up. Next will be a thorough review of every single page of your return, including all the schedules. If something seems off or she sees a potential area of concern regarding a deduction, she will contact you.
Susan will call to discuss your tax picture. If you want, you can also receive a draft copy via email to review yourself. After you review and approve the tax return, you can either come in and sign paper returns or receive digital e-signature via email. Once signed, Susan will e-file both federal and state returns.
Common Questions About Individual Tax Prep with Susan
While TurboTax works well enough for straightforward returns, many people make the switch because their returns became complicated in the past year (e.g., home sale, divorce, inheritance or new rental). Or, they received a notice and were unsure if their original return was correct. In other cases, they might want someone who can represent them if issues arise, or they simply get frustrated with leaving important decisions to software that they may not completely comprehend. A short phone call will help determine if making the switch would be beneficial for your situation.
Preparing an individual tax return involves completing Form 1040 and all of its supporting schedules: wages, self-employment income, rental income, investments, retirement income, and trust income that passes through to you personally. When preparing a business tax return, however, it involves preparing entity level returns such as S-corps (Form 1120-S), C-corps (Form 1120), partnerships (Form 1065) and non-profit organizations (Form 990). If you own a business that files its own tax return, you will likely require service in both areas. Susan is able to prepare both types of returns and assist with coordinating these returns for you.
Yes. A fiduciary income tax return (Form 1041) is filed separately from an individual’s personal tax return and requires that the fiduciary (the person responsible for managing the affairs of the estate/trust) report the income of the estate/trust to the IRS. Each beneficiary may receive a Schedule K-1 from the trust showing their share of income, deductions, and more. If you are the executor of an estate, or the trustee of an irrevocable trust or beneficiary receiving K-1 forms from a trust you did not establish, Susan can prepare your trust return and explain what each line on your K-1 means for your own tax return.
Possibly, depending on several factors. Under Section 121 of the Internal Revenue Code (IRC), taxpayers are allowed to exempt up to $250,000 ($500,000 for joint filers) of profit earned from the sale of their primary residence if they have owned and occupied the property for at least two of the five years preceding the date of sale. If you sold a home previously rented, took depreciation on it while renting it out, or utilized this exemption recently, the computation becomes much more complicated. The exemption is not automatically granted; it must be claimed on your return. This is one of the most common oversights on individual tax returns.
Both the IRS and California Franchise Tax Board (FTB) have long memories, but getting started is easy. File your missing returns in chronological order beginning with the earliest missed year. Susan can rebuild your lost returns utilizing any available documentation such as W-2s, bank statements, 1099s, prior year returns, and income transcripts from the IRS obtained directly. Even though penalty abatement cannot be guaranteed at the time of submission, it can often be requested after filing. The worst thing you could do is continue to avoid filing altogether. Since penalties and interest are compounded over time and tax liability does not disappear, you should take action sooner than later.
Yes. Susan has many clients who are not in Redding, and some who aren’t even in California. She is licensed in California but can prepare tax returns for any U.S. state. Some current clients are from Oregon, Washington, Idaho, and Texas.
Tax Season Without the Stress
Contact Susan today to discuss your tax concerns.