It’s Tax Time, are you ready to file your 2016 tax returns? This is that time of year where you either got it together or you are under the gun. Either way, here are some tax tips that will make tax preparation easier for you when you visit your tax preparer.
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Keeps All Reporting Documents in a Folder
During tax time you will receive a variety of information and reporting documents in the mail. They will include W-2s, 1099s, 1098s and K-1s, just to name a few. Be sure to save them for your tax appointment.
The IRS also gets copies of these forms, which they use to match to what’s claimed on your return. Any information that is missing from your return will cause you problems with the IRS later.
Higher Education Tax Credit
Did you or your spouse or dependent attend college last year? You are elible for an education credit based on the tuition you paid. This important information will be sent to you by the college or university as a Form 1098-T during tax time. This will be to your advantage to include it when preparing your tax return.
Did you sell or purchase a home? The escrow company should have sent you a final settlement statement. For the home purchase, the escrow documents may include deductible items. These are item are to your advantage to include on your tax return. For a home sold, you may be able to exclude the gain on the property sale.
Energy Tax Credit
The federal government provide a variety of energy related incentives. These are well worth your time to mention to your tax preparer.
Did you purchase a solar electric system for your home? You will qualify for 30% of the cost as a tax credit, yes, a thirty percent tax credit! Did you purchase an electric vehicle? You will quality for a tax credit of up to $7,500. In either case, you’ll need to bring the paperwork from the purhases to your tax preparer once you have made your appointment.
Missing Tax Return Documents?
Do you think you may be missing some documents or information you need to complete your reutrn? Make sure you keep your appointment with your tax preparer anyway. You can alway prepare most of the return, and then gather the remaining documents to complete the return. But get the builk of your tax return done. You can always send the missing information at a later date.
ID Theft During Tax Time
Tax Filing fraud has become a huge issue. To combat tax fraud the IRS is requiring employers to file W-2s and 1099-MISC forms by January 31st. This gives the IRS the ability to verify income before issuing taxpayer refunds. If you qualify for an earned income tax credit (EITC) or the traditional child tax credit your refund will not be issued until after February 15th.
Were you previously a victim of tax filing ID theft or also known as tax ID fraud? The IRS will provide you with a unique six digit filing nmber. A letter from the IRS with that number was probably mailed to you in December of last year; don’t misplace the number as it is required for you to file your return.
Before you call H&R Block or Liberty Tax This Tax Season
Do you have questions? Please call Alex at Worthtax, 781.849.7200. He has over 8 years experience helping his clients get the most out of their tax refunds. But you will want to get a jump on this year’s tax season soon. Call our office for an appointment today, so you can beat the rush. Worthtax has locations in Quincy, Weymouth and Dedham or book your appointment online.
Tax Time Articles and Resources
- Tax Resources
- Solar Panels: Are The Tax Credits Real?
- College Expenses Getting You Down? Tax Credits Can Help.
- Trump’s Tax Plan
- Surviving Spouse Estate Tax Exclusion
- Refund Too High? Owe Taxes? Adjust Your W-4!
- Top 12 IRS Tax Scams