The filing of income taxes for this year has just ended. Now, it is once again time to start getting ready for the next tax cycle. So, that being said, every one of us should at least have a firm grasp on the basic tax laws 2018. After all, as the old saying goes, you can only expect two things in this unpredictable world of ours – those are death and taxes.
As you may well know by now, there is simply no avoiding taxes. They are levied in practically every transaction we do. They are even embedded in our income. This article seeks to impart some of the important things you need to know about tax laws 2018.
Federal and State Income Tax Basics
Most of the time people tend to focus on their federal tax returns, however, this is only half the story. You should never forget that your state tax returns are just as important. Remember to do early on so that you can avoid the rush as the deadline approaches for both federal and state oncome tax returns.
Of course, many of the same rules apply for both federal and state tax codes. However, more often than not, there are subtle but crucial differences between the different tax codes as you go from one state to another. That is why it is vital that you familiarize yourself important to know the specific tax processes in your state as well as the federal tax laws.
For instance, in the state of Ohio, even the residents who are not generating enough income to be covered by income taxes are still obligated to file taxes in the Department of Taxation. This is due to Ohio’s tax laws that enables the state to collects taxes for all types of income generated locally. This covers everything from wages and tips to casino and lottery winnings.
All of these are collected on top of the federal tax returns. The funds generated from your taxes are put to good use by providing citizens with social services like public schools, hospitals and health centers, roads and the like.
Hiring a Tax Lawyer
Of course, if you want to avoid the hassle of dealing with all the paperwork yourself then you should consider hiring a tax lawyer to fix it all for you. These legal professionals are equipped with the knowledge and training necessary to assert your rights. In particular, your lawyer can help you go against the IRS and craft alternative proposals regarding your taxes. After all, it is their job to be well-versed in the different aspects of tax laws 2018.
Finding the right lawyer is not all that hard to find. You just need to ensure that they have impeccable credentials and a spotless reputation. You will also need to be comfortable and honest with your lawyer since you will be divulging all your sensitive financial information.
These are just a few of the things you should keep in mind as the new tax cycle starts.