Tax Season can be a profitable time but also a stressful one if you’re not properly prepared. There’s a lot of information and documents that your accountant will require in order to help you save money. Allow us to walk you through some of the most important aspects of tax season. Keeping these in mind will not only help you save money but also provide you with the knowledge necessary to make the most out of filing your taxes.
Remember Your Deadline
April 15th is the due date for filing your tax return as well as paying taxes owed. Remember to mark your calendar as filing late will lead to penalties, potentially costing you more money. If you’re unable to make this deadline, don’t forget to file for an extension to prevent late fees. Some reasons to file an extension include, if you or your spouse is ill or deceased, you have suffered a casualty and tax documents were lost, or you need additional time to fund certain employed retirement plans.
Though the IRS provides an automatic six-month extension to anyone unable to make the April 15th deadline, forgetting to file will result in result in late penalties. The amount of the penalty depends on how late you are filing. Failure to take care of tax penalties can lead to additional fees, a decreased credit score, and even prison time. Avoid these consequences by simply paying the amount owed and keeping in contact with the IRS throughout the entire process.
Know Your Tax Breaks
The best way to save money on your taxes is by finding expenses in your finances that are eligible for a deduction. Many people are unaware of certain tax-deduction and as such, miss the opportunity to increase their tax refund. One example of this charitable giving. While many are informed that donating money is makes for a nice tax break, it doesn’t just stop there. You can receive tax deduction on any expenses incurred as a result of using your automobile to provide services to a charitable organization, as well as sponsoring a student who lives in your home. Other examples are home improvements made for medical reasons and job-related moving expenses. Try to go through all of your expenses with your accountant, as they would know best where to find you other deductions.
With the proper guidance, tax season can be a breeze. It may not feel like it but the IRS and your accountant are your best friends and will help you come to viable solution, no matter what kind of situation you may be experiencing. Communication is key to saving as much money as possible when it comes to filing your taxes. By paying attention to these factors, you’re already half way there in regards to mastering the tax season.
Don’t forget to stop by the Tax Experts blog for more additional information on tax season and how to improve your finances, or by visiting us at www.besttaxexperts.com.