Four Tips for the Individual Tax Filer
1. Be Early – with over 119 million personal returns to be processed between January 31st and April 15th – you will want to be among the first.
2. Be Organized – the key to success in the tax world is organization. Key words to remember: Gather, Sort, & Save! The organizer you receive in the mail is perfect to help you with the task.
Most importantly please open your mail and ensure that W2s, 1099s and 1098s are addressed to the correct person and have accurate information. For example, if you did not work in the state of Kentucky in 2013 but your W2 states that you did; correct the mistake with your employer.
3. Be Educated – with a tax code of over 7 million words, we do not expect you to be an expert (that is our job) – but we do recommend that you are an educated consumer. What should you know? It would be ideal if you knew the tax returns that you file (federal/state(s)/local(s)) and had a good idea of your tax bracket and effective tax rate.
If you are in an income bracket where the Alternative Minimum Tax hits each year, and you still don’t understand the AMT – simply ask for a refresher – we are here to help you understand.
4. Be Yourself – If you can’t have an honest conversation with your accountant, your with the wrong accountant. So by all means, take the time throughout the year to meet and talk with us – we are here and ready to listen.
Please remember that every major life event for you or a family member has a subsequent tax consequence – if we work alongside you and plan, then we can help you maximize opportunities, not suffer penalties.
What are these major life events ? The list is extensive but includes marriage, graduation, birth, adoption, death, illness, job promotion, job loss, sales bonus, casino win, relocation, first time home buyer, vacation home, property sales, retirement options, elderly parents, or opening a new small business.
With so many forces shaping our daily lives it is easy to postpone meeting with us; however the truth is that taking the time to communicate can help you save money and time.
Pappas, Possenti, Mastrangelo & Company
Certified Public Accountants & Business Advisors