by Janice Forostiak, Marketing Department
Just finishing up taxes? Not to worry! You still have a few weeks until the April 15th deadline, so just take a deep breath, keep plugging along, and above all be careful! Avoid the mad dash to file your taxes, which can lead to errors and missed tax credits or deductions. Our friends at TurboTax have some golden rules to file by, and we’d like to pass them along to all our filers in advance of the big day. They’re simple and sensible. Use some or all, and save time and (hopefully) money!
• Contribute to Retirement Accounts. If you haven’t already funded your retirement account for 2013, do so by April 15, 2014. To start tax-free compounding as quickly as possible, don’t dawdle in making contributions. (Signal Financial offers several IRA options to meet your individual needs. )
• Itemize your Tax Deductions. It’s easier to take the standard deduction, but you may save a bundle if you itemize, especially if you are self-employed, own a home or live in a high-tax area.
• Don’t shy away from Home Office Tax Deductions. The eligibility rules for claiming a home office deduction have been loosened to allow more filers to claim this break. (See IRS.gov for details.)
• Provide IDs for all dependents. . . or risk being denied tax credits and exemptions.
• File and pay on time. Can’t finish? Then, make sure you file Form 4868 by April 15, 2014, which gives you a six-month extension until October 15, 2014. On the form, you need to make a reasonable estimate of your tax liability for 2013 and pay any balance due with your request. Remember, a delay in filing IS NOT a delay to PAY!! You should attach a check for your estimated obligation.
• File electronically. Especially if you expect a refund; it’s quicker, and the IRS will check that it’s complete. For details on the above and more tips from the people who know taxes, go to www.turbotax.com and click on Tools and Tips.
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