Tax Time Survival Guide!
With the start of the new year we wanted to give you a few tips as you get ready for filing, as well as some tips that can save you money next year!
1. Look at what was stressful last year and make a game plan of how you’ll tackle that this year.
Comparing can easily help you remember any mistakes or mishaps from before and avoid letting them happen again!
2. The IRS doesn’t like being ignored.
If you get any mail from the IRS make sure you read it thoroughly, and take the proper steps moving forward. The IRS will seize assets if they aren't given what is owed to them.
3. Be on the look out for IRS scams, especially through phone calls.
They will begin to occur even more frequently during this time as people are waiting to hear back on refunds and etcetera. The IRS will not contact you by phone or email, only trust what comes from them in the mail!
4. Max out your deductions!
Don't let any deduction go unnoticed. Try to save money where you can by educating yourself on any deduction that can be to your benefit.
5. Don’t leave out any credits or exemptions.
Same as deductions, don't let any of these pass you by! Popular ones include: American Opportunity Tax Credit, Lifetime Learning Credit, Child and dependent care tax credit, Child tax credit, Adoption credit, Earned Income Tax Credit, & so many more!
6. Make sure to put as much as you can towards your retirement plan contribution.
This income reduces your taxable income for the year. For 2019, contribution limits are $19,000, plus $6,000 in catch-up contributions if you’re 50 or older. For 2020, limits are increased to $19,500 and $6,500 in catch-up contributions.
7. Any big changes in your life and finances this year? Get some extra help!
Hire a CPA or other tax professional to help you with the ins and outs of preparing and filing so you don’t make a costly mistake!
8. Know your resources!
If you can't afford to go to a CPA or tax professional, no worries! There are tons of programs that can help. From online assistance to taxpayer assistance centers and the Volunteer Income Tax Assistance program, Americans can get the guidance they need to deal successfully with filing their taxes.
9. Make sure to double check everything.
A little mistake always has the potential to cost you a lot, both time and money! Make sure to double check all the details before hitting submit, or even have a fresh set of eyes give it a look over to catch anything you might have missed.
10. Honesty is the best policy
This is something your parents might have told you growing up but it remains true today. Even when it seems easy to fudge the numbers, don't! It's always better to file your taxes with a clean conscious rather than getting audited with a guilty one.
These are our tax time tips! We hope they helped you feel a bit more prepared for this stressful time of year, & for any assistance with 1099's or getting your books in order, give us a call!
We're ready to be on your financial team.