With tax season soon coming to a close, Roni Deutch, tax expert and author of The Tax Lady’s Guide to Beating the IRS: And Saving Big Bucks on Your Taxes, has tips you can start doing RIGHT AWAY so you’re not blindsided by the IRS in April:
1. Clean, correct, current and complete Use good recordkeeping habits and a computer to complete your return and you will have gotten yourself off to a fabulous start.
2. Right forms in the right order Using the right forms and putting them in sequential order makes it easier for the IRS to quickly read and review – which is what you want!
3. Use the correct filing status The wrong tax category could cost you plenty in credits and deductions.
4. Claim all of your allowable exemptions At $3,500 per exemption, that is a pretty penny to kiss away.
5. Don’t use round numbers Rounded numbers is a big red flag that the taxpayer is estimating the numbers and may increase your chance for an audit.
6. Double check your math Make sure to pay special attention to the Earned Income tax credit and Child tax credit—they are most often calculated incorrectly.
7. Sign your return Yes, it seems like an obvious point. But the IRS says unsigned tax returns are one of the most common taxpayer miscues.
8. File and pay on time and avoid penalties You must pay at least 90% of your tax due by April 15 to avoid penalties
9. If you are not ready, file an extension File IRS Form 4868 and you will get until October 15 to file and avoid a late filing penalty.
10. Keep a copy of your return For at least 6 years after filing your return, retain a copy just in case.
For more tips and suggestions, visit www.TaxLadyBook.com.
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