Nobody likes to pay taxes, but it’s an obligation on all U.S. citizens. All of us have to follow it, whether we like it or not. At the time of tax preparation in Kissimmee, many taxpayers fall behind in filing their taxes and have to file taxes late. Such taxpayers would definitely want to know ways to still be in the good graces of the Internal Revenue Service (IRS) without having to pay excessive taxes, fines and interest.
Zero Tax Liability means Zero Penalties and Interests
Late tax filing, especially if you have tax liability too, will result in penalties as well as interest which have accumulated since the due date of filing returns. However, the good news is that several taxpayers, particularly the ones living abroad, may not have any tax liability. So, if your tax liability is zero, you won’t have to pay any late penalties or interest either. Of course, you would have to file your tax return but the potential exposure for late filing will be pleasantly lesser for you.
If you are filing your taxes late for the years when you were overseas, you may qualify for foreign earned income exclusion. This can reduce a huge portion of tax liability, since eligible foreign income is excluded from taxation. But remember, you can only avail such exclusion if you choose to claim it on your tax return during your tax preparation in Kissimmee. Timely electing this exclusion is important. So, if you are filing your taxes late, you must make the election before IRS starts collection activity. In other words, claim the exclusion before you receive a notification from IRS to obtain back the tax returns still not filed.
If you haven’t filed a tax return for any tax year, keep in mind that the statute of limitations for assessing taxes by the IRS never expires.
Complex Tax Situations
You may have to face complex tax situations if you are filing taxes late, like late FBAR (FinCen Form 114) disclosure. However, there are ways you can potentially decrease your exposure and risk. Options like the Offshore Voluntary Disclosure Program (OVDP) will help you to correct your previous tax returns as well as late FBAR disclosures. But be careful, this disclosure program may not be suitable for everyone. The service providers for tax preparation in Kissimmee can give you right advice and proper guidance to enable you to make the best decision in your late tax filing and FBARs according to your individual situation.
Nonetheless, if you want to get tax relief, you should take action. The sooner you take action the better. If you posses foreign accounts, keep in mind that by this July all foreign financial institutions and banks will start declaring the accounts held by U.S. citizens to the IRS. Therefore, there is no point in hiding that information. You can only avail voluntary disclosure option before the IRS itself finds out your offshore account.
Find a good accounting firm for tax preparation in Kissimmee who have expertise in filing taxes late to help you catch up and back in to compliance with the IRS.
How to get a Tax Refund
Tax refund is the returning of excess amount of income tax paid by an individual to the government. Not many people get a large amount of tax return but some strike it rich. Ever wonder why? The proper managing and preparation of taxes results in large tax return.
In Kissimmee, tax preparation services assists individuals to get a good tax return. Paying taxes is not a very likeable thing for individuals to do but the best possible thing are if you are careful enough, you can get a good tax return. Here are a few tips to get a large tax return.
Get Professional Help
Many services of tax preparation in Kissimmee provide individuals with professional accountants to deal with their tax refund. There are many websites with tax refund software to assist you with your tax preparations. However, may people find them complicated or are not able to use them effectively. The best possible way to get a large tax refund is hiring a professional.
If you have a simple tax return, you can avail the services of a retail tax franchise. If your tax refund situation is complicated, opt for an independent tax firm or a professional accountant. These professionals are highly qualified and train to cater your taxation needs. Only the accountants specializing in complex tax situations will be able to help you to get best tax refunds possible.
Taking care of aging parents and children, racks up larger expenses. The good news is many of these expenses can be deducted from your taxes. You can subtract dependent care and any other expenses of caring for your children or parents. These family expense deductions are known as alimony. Health expenses of children and parents can also be deducted. It is better to consult a tax preparation Kissimmee service to determine what kind of expenses can be deducted and increase your tax refund.
Claiming Charitable Donations
In order to get a maximum tax refund, ensure you deduct all the charitable donations you made all year long. The charitable donations may include items you donate like household goods, furniture or clothing, monetary donations you make to charity, and fund raising events. Even old clothes and other items can be claimed in tax return.
Disaster Relief and Theft
If you have been unfortunate enough to be involved in a theft or natural disaster, you can claim the deductions in your tax refund. Earthquake, tornado, flood, ice storm or any other natural disaster as well as loss from theft can be easily claimed.
Increasing IRA Contribution
The best possible way to get a large tax refund is increasing the amount of contributions in your retirement funds. When you place money in your IRA (Individual Retirement Account), you lower the overall payable income tax. The more money you put in your IRA account, the lower taxes you will have to pay. As you contribute your money, your taxable income decreases so the tax applicable on your income, also decrease. However, there is a maximum limit to lower the taxable income. Make sure you know about the limit and that you make all the IRA contributions before given deadline.
Follow the above mentioned advices in order to get a large tax refund. Consult tax preparation Kissimmee services to determine more ways to claim a deduction.
If you need more information about our Kissimmee accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, and Celebration, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.