Why Start Early on Tax Preparation?

Many problems individuals face in their relationship with the IRS are to do with the urge to procrastinate and put off tax preparation until the last moment. The earlier you file your tax returns the sooner you can expect getting your refunds. Filing your tax returns when you are not rushed and have all your records and receipts at hand will ensure you make fewer mistakes. Mistakes are expensive. While hastily filing your taxes to meet the deadline, you might make some critical errors by overlooking potential sources of tax savings. Having all your records and receipts organized ahead of time will make your tax preparation a much easier task and considerably less stressful to you. Don’t forget to keep a copy of all your records and receipts for your own files. Another common mistake that some individuals unnecessarily make on their files is bad math while calculating returns and quoting their SSN incorrectly. With mistakes on the filings regarding Social Security Number and other numerical mistakes, the tax payer can expect a call from the IRS.

All the relevant forms for filing your returns and directives are on the IRS website. Log onto the website IRS.gov and check the Forms and Publications section for appropriate forms. Free assistance from the IRS is also available on toll free service or on its private help line. If you are in doubt of how to proceed with your tax preparation, don’t panic but contact the free help available at IRS Taxpayer Assistance Centers and Volunteer programs based all around the country.

The government tax code provides a variety of incentives to those families that are repaying student loans or paying higher education costs. Be sure to avail of those benefits, if you, your spouse or dependent is enrolled in an eligible higher education institution. You may be applicable for the American Opportunity Credit (formerly known as Hope Credit) or Lifetime Learning Credit for the qualified tuition and related expenses for students (you, your spouse or dependents) engaged in higher education at eligible educational institutions. Upper income levels cannot claim benefits as they are phased out with higher income. The elderly and disabled are eligible for Credit for the Elderly or the Disabled. Click here to know more.

Those home owners who have refinanced their homes may also be entitled to deduct some costs related to their loans. On selling your home you may be able to exclude up to $250,000 of gain from your federal tax return, ($500,000 for married taxpayers filing jointly). For further money savings consult professional consultants on your tax preparation. Silverdale, WA residents can consult Olympic Tax & Business Consulting, LLC for all their taxation needs.

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