Tax time is here, and this year the deadline is extended by three days, offering procrastinators a bit of a reprieve. However, the longer one waits, the greater the chance of making a mistake. Below are some tips to help filers meet tax deadlines accurately and confidently.
Get Things Organized
Before starting in on this year’s Income Tax preparation in New York City, gather all relevant deduction and income information as well as Social Security numbers for everyone in the household. Evaluate last year’s tax return and ensure that there’s enough information to support the same claims for this year. Below are some examples:
• Income. W-2 and 1099 forms document income received from a variety of sources.
• Credits and deductions. If one is itemizing deductions, they will need a 1098 form to deduct interest paid on a home mortgage. Those buying health insurance on a state or federal exchange should include form 1095-A to determine the amount of the relevant tax credit.
Choose a Tax Preparer
The next step is to go to Rawcpa.com and choose a professional tax preparer. Those making $54,000 or less during the past year may qualify for assistance through a volunteer program. For those with income over that threshold, the Internal Revenue Service offers help in finding a tax preparer. Many preparers stay open later as the filing deadline approaches.
Take Things Slowly
During tax season, mistakes can be expensive, and they can delay one’s refund. Below are the most common last-minute filing mistakes.
• Basic info: Simple errors include entering the wrong Social Security number, address, or bank routing number. On a paper return, math mistakes, misread tax tables, omitted signatures and forms can all delay processing.
• Income: Forgetting state tax info, unemployment payments, dividends and freelance income info can cause the IRS to assess penalties if the overall tax owed increases.
• Credits and deductions: For those who itemize, forgetting local, state, real estate, and personal property tax payments can result in a smaller refund.
Despite what most people hear, the deadline for Income Tax preparation in New York City typically only applies to those who owe money to the IRS. If one expects a refund, the IRS does not worry as much about meeting the deadline-;but prompt filing can make a refund arrive that much faster.
Tweet us on Twitter!
