Tax Preparation Services

Income Tax Preparation
by Cougar Solutions USA

Copyright © 2011-2023 Cougar, Inc. All rights reserved.

If you're comfortable using a browser, file your Federal return for free via members of the Free File Alliance.

IRS and State: Go to the IRS Free File web site, click on the [Start Free File Now] button, and fully read the information there, especially the information about fees for filing state tax returns. Choosing a vendor who states "Free for any state if you qualify for federal" will help ensure the filing is completely free. Then click on the chosen vendor and start the tax preparation process on their site.

New Mexico only: If you only need to file in New Mexico, you can do so for free at the
New Mexico Taxpayer Access Point.

General: Free filing is done completely online. Make sure to print and keep detailed copies of the tax returns and supporting data for your records, and keep your W-2, 1099, and other forms used to prepare the return. Most free filing vendors delete the online copies of the returns after a few months or a year. To be safe, keep your copy of the return and forms for 10 years.

WARNING! Make sure to only use the IRS Free File site above. If you do a Google or Bing search for free filing, you may get directed to a site that will steal your identity. BE SAFE!

Do you offer Refund Anticipation Loans?

No. Refund Anticipation Loans are bank loans. The banks and preparers who offer these charge fees. If you file your return early, use electronic filing, and use direct deposit, you can get your refund in as little as 14 days without a loan. Also, in some cases the IRS may disallow a deduction or credit, and send back a refund that is lower than anticipated. If this happens, you're stuck with payments on a bank loan.

Why do you offer an Early Bird Special?

Many people wait until the last minute (April 18 in 2023) to file. By providing an incentive to finish taxes earlier, it helps to even out our workload.

What is "basis"? What is "adjusted basis"?

Basis is the amount of money that you pay for an asset (home, car, computer, furniture, etc.). Click here for more details.

What records do I need?

See this IRS Tax Tip. The records that are needed to prepare your return are the same ones you should keep. There are many situations where records are needed far into the future, so we suggest keeping records for 10 years, or longer if the records are for an asset you still own (e.g. your house).

What is the difference between the standard deduction and itemized deductions?

See our white paper on deductions for more information.

For more information, or to make an appointment, contact Sid Gudes:

Phone

+1-505-595-4800

E-mail

Information and Appointments

Webmaster

Comments and suggestions about our web site? Broken links or other problems? Please let our Webmaster know about it! Thank you.

Cougar Solutions USA has provided financial services since 1995. Our lead tax preparer, Sid Gudes, has been preparing taxes as a service since 1991. Sid participates in the IRS Annual Filing Season Program, and is listed in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications (enter "Gudes" as the last name and click Search).

Additional fees apply for:

Receipts, transactions, and items in excess of the numbers covered by the basic fee

Partnership or S-corporation income/loss (Schedule K-1)

Business (Schedule C), depreciation (Form 4562), sales of business property (Form 4797)

Foreign Earnings and Foreign Tax Credit (Form 1116)

Rental Real Estate (Schedule E) and Passive Activities (Form 8582)

Capital Gains and Losses (Schedule D and Form 8949)
Farm Income (Schedule F)

Resident or non-resident return for a state other than New Mexico

New Mexico part-year return

Determining stock or real estate sale basis if there are missing records

Other forms not listed above or covered by the basic fee

Getting the biggest refund and paying the lowest amount of tax allowed by law. Starting with the 2018 tax year, many old deductions have been removed or limited by the Tax Cuts and Jobs Act (TCJA). If you are filing a 2016 or 2017 return, these are still available, but not for 2018 or later.

Adoption Credit

American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit

Child Care Credit

Earned Income Credit (EIC)

Energy Credits

Foreign Earned Income Credit (FEIC) and Foreign Tax Credit

Itemized Deductions (Schedule A) for expenses such as: medical, charitable, property taxes and other state taxes paid (limited by TCJA), mortgage interest and points (limited by TCJA). Also looking for work, investing, work tools, supplies and uniforms, and theft losses (eliminated by TCJA).

Retirement Savings Credit

Other deductions: moving expenses (limited by TCJA), educator expenses, HSA contributions, SEP/SIMPLE/IRA contributions, self-employed health insurance, alimony paid (eliminated by TCJA), student loan interest paid, tuition and fees paid

IRS TAX TIP 2012-71: Managing Your Tax Records After You Have Filed

Keeping good records after you file your taxes is a good idea, as they will help you with documentation and substantiation if the IRS selects your return for an audit. Here are five tips from the IRS about keeping good records.

Normally, tax records should be kept for three years.

Some documents – such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property – should be kept longer.

In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return.

Records you should keep include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment, and any other records to support deductions or credits you claim on your return.

For more information on what kinds of records to keep, see IRS Publication 552, Recordkeeping for Individuals.

Basis. The basis of an asset is its cost, including shipping, installation, taxes, and fees. For example, if you buy a home, the basis of the home is the amount you paid for it (including down payment and loan). If you buy a computer, its basis is the amount you paid for the computer, tax, and shipping. If you buy an extended warranty on the computer, it is not part of the basis, but that's a discussion for another day.

Adjusted Basis. The adjusted basis of an asset is its cost, plus improvements, minus reductions in value. Improvements include such items as adding a new room to a house, putting on a new roof, converting a basement, or putting in new wall-to-wall carpet. Reductions in value include removals from the asset (for example, a standalone garage may degrade to the point it needs to be torn down). Normal repairs and maintenance do not increase basis.

For assets used in a business, adjusted basis includes depreciation, a calculated loss of value over the years due to wear-and-tear on the asset. The IRS prescribes the depreciation amounts that are used to calculate this loss in value.

Adjusted basis is used to determine capital gains and losses, which directly affects the amount of tax that you pay when an asset is sold. See our white paper on basis for more information.