tax preparation

Tax preparation is the process of gathering and organizing financial information to file income tax returns with the government. This includes collecting documents like W-2s, 1099s, and receipts, calculating income and allowable deductions, and ensuring compliance with tax laws. Individuals or businesses may do this themselves using tax software or hire professionals, such as accountants or tax preparers, for assistance. The goal is to accurately report earnings, claim eligible credits, and minimize tax liability while avoiding errors that could lead to penalties or audits. Proper tax preparation helps ensure timely submission and maximizes potential refunds.