Helpful Tax Tips Everyone Needs to Know
There are many things that can determine if you are getting the correct refund from the IRS.
Being in the field for many years we have seen where people make most of their mistakes. This is why we have created some helpful tips that can make a big difference in your refund for either this year or your future years.
Ever wonder if your tax preparer did your taxes right? Well, unfortunately, the IRS did not require tax preparers to go through any training in the past so it made it very difficult to find someone that knows what they are doing. We always make sure to explain what we're doing in a tax return because if there are any IRS difficulties later we want you to know what is going on.
First important mistake that every tax payer should remember is to keep all the records of their spending through the year. This way when you file your taxes you will be able to prove the amounts that are on your tax return. When IRS asks for proof they want actual transactions from your bank statements or actual receipts.
Second most common mistake that most tax filers do is claim a dependent that does not meet all the requirements need to be listed on a tax return. Make sure that your tax preparer determines if you are eligible to claim your dependent. If you do not qualify to list that dependent then don't do it because IRS will ask for proof through medical records, school records, power of attorney and a few other valid documents.
Third most common mistake that a lot of taxpayers do is live in fear from the IRS. You have nothing to fear is you follow the IRS tax law. Don't be afraid to claim the money you earned on the side because chances are that you will incur expenses for the services performed and it might put you in a better tax bracket and your refund amount will increase.
Fourth most common mistake that most taxpayers make when filing their taxes is asking them selves if they can claim/not claim a deduction. IRS has publications for that and we know the publications.
Fifth most common mistake you, as a taxpayer, can make is use free tax preparation software/website. Unless you invest some money to get good software (equivalent to a regular tax preparation fee) or upgrade your membership online you will not be able to maximize your refund because you will not be able to itemize your deductions.