Strategic Wealth Inc.
File on time, AND… file even if you can’t pay in order to avoid a late-filing penalty fee.
If you’re just not ready, and think that buying yourself some extra time is your best option at this point, you can file for an extension (which buys you 6 more months to file).
Presuming you are filing, here are some practical suggestions:
Consider filing electronically to avoid mistakes, and lines at the P.O. There are new forms and rules with the Affordable Care Act, and tax prep software guides individuals through the process and does all the math for you.
Pay attention to details and don’t overlook additional questions or checkboxes. Be sure to read each form thoroughly, right down to the bottom line.
Double check your return for accuracy and avoid simple errors like wrong spellings or bad math. Don’t forget that unemployment pay is taxable.
Mail your forms to the right place – refer to the IRS website “where to file”
Contribute to a tax advantaged medical savings account if you have an HSA
Contribute the maximum to your contribution/benefit plans
401ks & IRAs, Roth IRAs
Don’t overlook credits and rebates:
Charitable contributions are deductible if you itemize deductions. If you made charitable contributions, record the names of organization, dates and amounts
Do you qualify for education credits? (American Opportunity Tax Credit and Lifetime Learning Credit).
Be sure to claim any energy-related tax credits and rebates you may be eligible for
Don’t leave money on the table:
Did you incur expenses related to your work?
Do you quality for a special deduction allowed for paying interest on a student/educational loan?
You can include deductions for mileage for business, charity, medical and moving; donations to Goodwill and other agencies like it…small things can add up.