Tax Preparation Services
Filing your taxes accurately is not optional — but it doesn't have to be stressful. At Myung Keon Kim CPA, we prepare individual and business tax returns using Drake Tax, one of the most accurate and audit-tested software platforms in the industry. Every return is reviewed and signed by a licensed New York CPA before it leaves our office.
Individual Tax Returns (Form 1040)
The standard individual return covers wages (W-2), self-employment income (Schedule C), investment income (Schedule D, Form 8949), rental income (Schedule E), and retirement distributions. But "simple" returns are often not simple: a mix of W-2 income and a side business, a stock option exercise, a rental property sold in the same year as a job change, or foreign bank accounts — each layer adds complexity and opportunity to minimize tax.
We prepare all associated schedules: Schedule A (itemized deductions), Schedule B (interest and dividends), Schedule C (business profit/loss), Schedule D (capital gains/losses), Schedule E (rental income), and Schedule SE (self-employment tax). We also handle Forms 2441 (child and dependent care credit), 8863 (education credits), 8962 (premium tax credit), and 8949 (sales of capital assets).
Deductions and Credits We Look For
The difference between a good tax preparer and a great one is thoroughness on deductions and credits. We review every client's situation for:
- Home office deduction — the regular and exclusive use test, direct vs. indirect expenses, simplified vs. actual method
- Vehicle expenses — the standard mileage rate, which the IRS resets each year, vs. actual expense method; mileage log requirements
- Retirement contributions — Traditional IRA (deductible vs. non-deductible), Roth IRA, SEP-IRA contributions for self-employed clients
- Student loan interest — up to $2,500 deductible; income phase-out rules apply
- Qualified Business Income (QBI) deduction under §199A — up to 20% of qualified business income for pass-through entities
- Child Tax Credit — up to $2,000 per qualifying child; phase-out thresholds apply
- Earned Income Tax Credit (EITC) — often missed by self-employed clients with lower-income years
- Foreign tax credit — for clients with income taxed in South Korea or other countries (Form 1116)
Filing Deadlines and Extensions
The April 15 deadline is firm for tax payments. An extension (Form 4868) gives you until October 15 to file, but you must pay any estimated tax owed by April 15 to avoid interest and the failure-to-pay penalty (0.5% per month, up to 25% of unpaid tax). The failure-to-file penalty is steeper — 5% per month, up to 25%. We help clients estimate what they owe before the deadline so extensions don't turn into surprise bills.
New York State forms follow the same calendar. New York City residents with income above certain thresholds also owe New York City personal income tax, filed as part of the state return. New York has its own nonresident filing requirements — if you moved in or out of New York during the year, a part-year resident return (IT-203) is required.
Pass-Through Income: K-1s and Multi-Entity Returns
If you are a partner in a partnership or a shareholder in an S-Corporation, you will receive a Schedule K-1 showing your share of the entity's income, deductions, and credits. K-1s often arrive late — sometimes in March or even after the April 15 deadline — which is a common reason to file an extension. We coordinate with partnership and S-Corp return preparers (including returns we prepare ourselves) to ensure K-1 information flows correctly to your individual return.
Basis tracking matters with K-1 income. Losses from a partnership or S-Corp are deductible only to the extent of your tax basis in the entity. At-risk rules (Form 6198) and passive activity rules (Form 8582) may further limit deductible losses. We track basis year over year for clients with ownership interests in pass-through entities.
Rental Income and Real Estate
Rental income is reported on Schedule E and taxed as ordinary income — but depreciation deductions can significantly reduce net taxable income. Residential rental property is depreciated over 27.5 years; commercial property over 39 years. Cost segregation studies can accelerate depreciation for larger properties. Passive activity loss rules generally limit rental losses to $25,000 per year for active participants with modified AGI under $100,000, phasing out between $100,000 and $150,000. Real estate professionals (meeting the hours test under §469) are exempt from passive loss limits.
Frequently Asked Questions
What documents do I need for tax preparation?
For individuals: W-2s from all employers, 1099 forms (1099-NEC for freelance income, 1099-INT for bank interest, 1099-DIV for dividends, 1099-B for stock sales), Social Security statements (SSA-1099), K-1s from partnerships or S-Corps, mortgage interest statements (Form 1098), property tax records, and receipts for deductible expenses. For business owners, also bring your profit and loss summary, mileage log, and records of asset purchases. We send you a detailed organizer checklist when you become a client.
When is the federal tax filing deadline?
For individual returns (Form 1040), the deadline is April 15. If April 15 falls on a weekend or holiday, the deadline moves to the next business day. You can request an automatic six-month extension (Form 4868) by April 15, which extends your filing deadline to October 15 — but the extension only extends the time to file, not the time to pay. Any taxes owed are still due April 15, and interest and penalties accrue on unpaid balances from that date forward. New York State follows the same April 15 / October 15 calendar.
Can you file amended returns?
Yes. If you filed a return with errors — missed income, overlooked deductions, wrong filing status — we can prepare an amended return (Form 1040-X). You generally have three years from the original filing deadline to claim a refund on an amended return. There is no time limit if you are reporting additional income (you can amend at any time, though the IRS may assess additional tax plus interest). Common reasons we see amended returns: forgotten retirement contributions, missed K-1s received after filing, incorrectly reported cost basis on investment sales, and changes to a business entity return that flow through to individual returns.
Do you handle IRS notices and audits?
Yes. We represent clients before the IRS and New York State Department of Taxation. If you receive a CP2000 (income mismatch notice), audit letter, or collection notice, bring it to us immediately — response deadlines are strict and ignoring a notice compounds the problem. We respond to correspondence audits in writing, and for field audits we can accompany you or handle the entire matter on your behalf. CPA representation rights under Circular 230 mean we can practice before all IRS offices.