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Tax Tips
Make sure that you have accurate
social security numbers for your spouse and ALL dependents (no matter how
newly born). Incorrect or transposed social security numbers are often the
single biggest causes for refund delays. If possible, bring actual social
security cards to your tax consultation.
Make sure that you SIGN your tax return(s) and include all attachments in
the correct order as specified before you send your completed packet to the
proper tax authority. Not signing will delay the processing of your tax
return(s). Your completed tax packet from Tax Man will contain all your
forms and attachments already in the correct order for sending to the tax
authorities, plus one complete copy of your tax return for your files. Sign
all copies that you are sending out.
Include your social security number on each page of your tax return so that
if a page is misplaced by the IRS, it can be re-attached. Tax Man tax
returns automatically print this information on each page.
If you have a federal balance due, make sure that your check is made payable
to "US Treasury," not "IRS" or "Internal Revenue Service", due to fraudulent
activity with checks made payable to "IRS" in the past.
Make sure you choose the proper tax filing status for your tax return. Your
Tax Man tax preparer can help you with these choices.
If you are married, check to see if filing separate returns ("married filing
separately") rather than a joint return ("married filing jointly") is more
beneficial. Your Tax Man tax preparer can help you with this decision
through a computer generated comparison analysis.
Double-check all of your and your tax consultant's data inputs, ESPECIALLY
social security numbers.
If you are newly married and using your married name, make sure you have
sent a change of name form to the Social Security Administration. We see
countless IRS and state authority processing delays due to this often
overlooked detail.
If you are single and have a dependent who lives with you, check to see if
you qualify for the lower tax rates available to a "head of household" or
surviving spouse filing status. Your Tax Man tax preparer can help you with
these choices.
If a household employee cares for your dependent who is under age 13 or for
your spouse or dependent who is not capable of self care, you may be able to
take an income tax credit of up to 30% of your expenses. To qualify, you
must pay these expenses so you can work or look for work. If you can take
the credit, you can include in your qualifying expenses your share of the
federal and state employment taxes you pay, as well as the employee's wages.
Make sure you complete schedule "H" for all household employees earning more
than $1,000/year.
Check that you have claimed all of your dependents, such as elderly parents
who may not live with you.
You may be eligible to claim the additional standard deductions if you are
blind or 65 years of age or older.
Attach all "Federal" copies of your W-2 forms to your tax return in order to
avoid unnecessary correspondence with the IRS.
Be sure to sign your check and write your social security number and the tax
year on the face of any checks made out to the Internal Revenue Service.
(Example: "000-00-000 - 200_ Form 1040")
If you worked for more than one employer, check whether you may have
overpaid social security taxes withheld from your wages. Ask your Tax Man
tax preparer for further details.
Make sure to sign and date your tax return(s) and enter your occupation. If
you are filing a joint return, be sure that your spouse also signs as
required.
Be sure that your Form W-2 and all Form 1099's are correct. If they're
incorrect, have them corrected as soon as possible so that the IRS's and
state's records agree with the amounts shown on your tax return.
Check last year's tax return to see if there are any items which you can
carry over to this year, such as charitable contributions or capital losses
that exceeded the amount you were previously able to deduct. Ask your Tax
Man tax preparer for further details.
If you can be claimed as a dependent on someone else's return, do not claim
a personal exemption on your tax return.
If you have contributed to a non-deductible IRA account, be sure to fill out
Form 8606 for "Nondeductible IRA Contributions".
Make sure that you are using the correct tax rate for your filing status.
Tax Man's tax preparation software will do this for you automatically.
Don't miss deadlines: file your tax return by the April filing deadline, or
request an extension. File your estimated taxes on time to avoid late
penalties. Check the tax calendar periodically on our website, under "Dates
to Remember."
Changing the number of allowances you claim on a W-4 form will increase your
take-home pay, but decrease (any applicable) April tax refund.
KEEP COPIES OF ALL DOCUMENTS AND CORRESPONDENCE SENT TO THE IRS OR YOUR
STATE DEPARTMENT OF REVENUE. Use certified mail for important or time
sensitive correspondence, and keep copies of airbills used for express
delivery.
Keep copies of tax returns and all related documentation for at least FOUR
years. If you own a home or investment assets, keep all of your
documentation until you dispose of the home or asset(s), and hold for an
additional three years after the sale of the home or asset(s).
Consider filing your tax return electronically. Last year over 30 million
taxpayers filed electronically, and the IRS will be strongly encouraging
taxpayers to begin filing returns electronically over the next few years.
Electronic filing can shave four weeks off the receipt of your refund, and
can verify that your tax return has been received by the IRS.
A
Few Deductions to Remember
 | Fees paid for tax preparation services
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| Fees paid to financial planners
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| IRA custodial fees
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| Costs relating to investments
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| Subscriptions to investment publications
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| Job related expenses such as travel, entertainment and other
non-reimbursed business expenses
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| Medical expenses (if you itemize)
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| Interest paid on mortgage or equity loans (if you itemize)
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| Real estate taxes paid (if you itemize)
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| Auto excise taxes paid (if you itemize)
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| Union dues
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| Costs for uniforms
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| The cost of safe-deposit boxes where you store securities or tax
documents
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| Charitable contributions
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| Non-commuting auto usage costs for business purposes (mileage,
repairs, lease fees, insurance, gas, oil, parking, tolls, etc.)
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| · Health costs for yourself, your spouse and your dependents when the
un-reimbursed expenses exceed 7.5% of your Average Gross Income (AGI)
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