Brandy Hales
Welcome to the digital hub of Brandy Hales, CPA, a dedicated entrepreneur and financial expert with a passion for agriculture and sustainable farming. This platform highlights Brandy’s extensive experience in both accounting and agribusiness, showcasing her commitment to financial excellence and hands-on farming. Since 2013, she has successfully operated a poultry farm in Morton, Mississippi, growing for Koch Foods, while also managing a herd of Black Angus cattle. With a deep understanding of both financial strategy and agricultural operations, Brandy Hales brings a unique perspective to the intersection of business and farming. Beyond her professional endeavors, she is passionate about sharing her knowledge, empowering others to navigate the complexities of finance and sustainable agriculture with confidence. Through her expertise and dedication, Brandy continues to make a lasting impact in both the financial and farming industries.
About Brandy Hales, CPA
Brandy Hales is a Certified Public Accountant and an experienced agricultural entrepreneur. Since 2013, she has owned and operated a poultry farm in Morton, Mississippi, where she grows for Koch Foods. In addition to her poultry operation, Brandy Hales manages a small herd of Black Angus cattle, combining her financial expertise with hands-on experience in farming and livestock management.
Tax Filing 101: A Beginner’s Guide to Filing Your Taxes
Filing taxes can feel like an overwhelming task, especially if you’re doing it for the first time. Between tax forms, deductions, credits, and deadlines, it’s easy to get lost in the process. However, understanding the basics can help you navigate tax season with confidence and ensure that you maximize your refund or minimize what you owe.
This beginner’s guide from Brandy Hales, CPA, to tax filing will walk you through the essential steps, from gathering necessary documents to filing your return, helping you stay organized and avoid common mistakes.
1. Understanding the Basics of Taxes
Taxes are mandatory payments that individuals and businesses make to the government. Brandy Hales, CPA, explains that the federal government, along with most states, requires citizens to file an annual tax return, which determines whether they owe additional taxes or qualify for a refund.
The amount of taxes you owe is based on your income, deductions, and credits. The IRS (Internal Revenue Service) oversees tax collection in the United States, while each state has its own department responsible for handling state taxes.
2. Gather Your Tax Documents
Before you start filing your taxes, you’ll need to gather all the required documents. Brandy Hales, CPA, explains that the most common ones include:
W-2 Form: If you are an employee, your employer will provide this form, which details your wages and the taxes already withheld.
1099 Forms: If you are self-employed or earned income from freelance work, investments, or other sources, you may receive different 1099 forms.
1098 Form: If you paid interest on a student loan or a mortgage, you will receive this form to claim deductions.
Other Income Documents: These include rental income statements, Social Security benefits, and dividends.
Receipts for Deductible Expenses: Keep records of charitable donations, business expenses, medical bills, and educational expenses, as these may help lower your taxable income.
3. Determine Your Filing Status
Your filing status affects your tax bracket, standard deduction, and eligibility for certain credits. Brandy Hales, CPA, explains that the five filing statuses are:
Single: Unmarried individuals who do not qualify for other filing statuses.
Married Filing Jointly: Married couples who combine their income and deductions on one return.
Married Filing Separately: Married couples who file separate tax returns, often for strategic financial reasons.
Head of Household: Unmarried individuals who provide at least 50% of the financial support for a qualifying dependent.
Qualifying Widow(er): Individuals whose spouse has passed away and who have dependent children may qualify for this status for up to two years.
4. Choose How to File Your Taxes
Brandy Hales explains that you can file your taxes in several ways, depending on your comfort level and financial situation:
DIY with Tax Software: Programs like TurboTax, H&R Block, and TaxAct can simplify the filing process by guiding you through tax forms step by step.
Use Free IRS Filing Options: If your income is below a certain threshold (currently $73,000 for most filers), you may qualify for free tax preparation through the IRS Free File program.
Hire a Tax Professional: If your financial situation is complex—such as owning a business, having multiple income sources, or claiming complicated deductions—a tax preparer or CPA (Certified Public Accountant) may be worth the cost.
File Paper Forms: Though less common, you can still file a paper tax return and mail it to the IRS.
5. Know Your Tax Deductions and Credits
Understanding the difference between deductions and credits is crucial:
Deductions reduce your taxable income. Common deductions include:
Standard Deduction ($13,850 for single filers in 2023)
Student loan interest
Mortgage interest
Medical expenses exceeding 7.5% of income
Charitable donations
Tax Credits directly reduce the amount of taxes you owe. Common credits include:
Earned Income Tax Credit (EITC) for low- to moderate-income individuals
Child Tax Credit for parents of qualifying children
American Opportunity and Lifetime Learning Credits for education expenses
6. Calculate Your Taxes and Review Your Return
Once you’ve entered all your income, deductions, and credits, you’ll need to determine if you owe taxes or are eligible for a refund. Your employer typically withholds taxes from your paycheck throughout the year, which can lead to a refund if too much was withheld. Before submitting your return, review it carefully for accuracy to avoid IRS audits or delays in processing. Common errors include:
Incorrect Social Security numbers
Misspelled names
Incorrect income amounts
Filing under the wrong status
Most tax software programs automatically check for errors before submission.
7. Submit Your Tax Return
The deadline to file your taxes is typically April 15 (unless it falls on a weekend or holiday). Brandy Hales, CPA, explains that you can file electronically or send a paper return via mail.
E-filing: Faster, more secure, and results in quicker refunds (especially with direct deposit).
Paper Filing: Takes longer to process and can delay your refund.
If you owe taxes, you can pay via direct withdrawal, credit card, check, or IRS payment plan.
8. Plan for Next Year
Once you’ve filed your taxes, it’s a good idea to plan ahead for next year. Consider:
Adjusting Your Withholding: If you owed a lot of money or received a large refund, adjusting your W-4 form with your employer can help even out tax payments throughout the year.
Tracking Deductions Early: Keep receipts and documentation for deductible expenses, rather than scrambling at tax time.
Contributing to Tax-Advantaged Accounts: Contributing to an IRA, 401(k), or Health Savings Account (HSA) can lower your taxable income.
Filing your taxes doesn’t have to be stressful. Brandy Hales explains that by staying organized, understanding your deductions and credits, and using available resources, you can file confidently and efficiently. Whether you file on your own or hire a professional, knowing the basics of tax filing ensures you’re making informed financial decisions and keeping more money in your pocket. With the right preparation, Brandy Hales, CPA, emphasizes that tax season can go from a dreaded task to a manageable—and even rewarding—process.
Thank you for exploring the online portfolio of Brandy Hales, CPA, a dedicated entrepreneur and financial expert with a strong foundation in agriculture and sustainable farming. Since 2013, Brandy has successfully operated a poultry farm in Morton, Mississippi, growing for Koch Foods, while also managing a herd of Black Angus cattle. Her expertise in accounting and agribusiness allows her to navigate the financial and operational complexities of farming with precision and insight. Brandy’s commitment to excellence in both finance and agriculture has made a lasting impact in her industry and community. Beyond her professional accomplishments, she is passionate about sharing her knowledge, mentoring aspiring entrepreneurs, and promoting sustainable farming practices. Her strategic approach blends financial acumen with hands-on agricultural experience, empowering others to build resilient and successful agribusiness ventures.