If you are one who’s procrastinated until the last minute to file your taxes, the time is now. Are you prepared? Those who wait until the last minute to file their taxes are more likely to make mistakes. Here are some tips to help.
* Organization. Gather and organize all your documents. Include all income, social security numbers, dependents, routing numbers and account numbers for direct deposits. Make sure your documents support any deductions you are planning to take on your taxes. Try not to rush. When you rush you have a bigger chance of errors, which may be costly and delay any refund that you may be due.
* Income statements. Gather all of your W-2’s and 1099s and your 1099-INT for any interest earned on your bank accounts. Did you win the lottery? You will need form W-2G.
* Tax credits and deductions. Gather all of your receipts. This might include receipts for donations, purchases, education, retirement savings, health insurance, child care, work uniforms, and receipts concerning your business, etc. If you purchased your healthcare from the ACA website you should receive form 1095-A to calculate your tax credit.
Here are some common errors to look out for.
* Entering the wrong social security numbers for yourself or someone else listed on your return.
* Check for math errors and attach any forms that go with your return.
* Double check the routing and bank account numbers to ensure they are correct.
* Total income. Don’t forget to include your dividends, unemployment compensation, lottery winnings, or self-employment wages. You may owe tax penalties if the IRS discovers you omitted any income that should have been included.
* Deductions. You may qualify for deductions or credits for a qualifying home office and other business expenses. You may be eligible to deduct things such as; property taxes, mortgage, tuition, health savings accounts, etc.
* Signatures. Don’t forget to sign your return! Your return will be mailed back to you causing a delay in receiving any refund you are entitled too.
If for some reason you are unable to get your taxes done by the April 18th deadline, you can file for an automatic 6 month extension. However, you must pay any taxes owed on the tax deadline.
At Summit CPA we offer multiple resources to assist you with all of your tax and financial needs. Contact our office at (260) 497-9761 to schedule an appointment with our advisors.