Mistakes are acceptable and anyone can make them at any time. But when it comes to your taxes, you should avoid them as much as you can. Should you not, it is just going to delay your refund, and you may even get a smaller amount than what you deserve. In some cases., it can even lead to an audit. Hire an accountant Orlando and they will make sure that you do not make any mistake.
Social Security Information
You have to provide your social security information on your return form. The spelling of your name must be exactly the same as it is given on your social security card, and the number must also be the correct. The same goes for all your dependents as well; you will have to provide their complete social security details as well.
If you are using software, your calculations will be right and there will be no mistake with them. However, you will still have to take care and put in the right numbers. Be sure to check them again and again.
Calculations on your form are really important; the amount you have to pay as a tax completely depends on t.
Surprising as it may seem, we know so many people who fill out their complete form and then forget to sign it in the end. Whether it is your tax return, or any other document, your signature is really important and you just cannot forget it.
The IRS is really serious about this, and if your signature field is blank, they do not mind charging you a penalty. As for a delay, that is definite.
There a number of tax forms which have been designed for different purposes and individuals. You have to make sure that you are filing out the right one, or you might be paying higher amounts in taxes than necessary. As an example, 1040 allows more dedecutions that the 1040EZ form.
There are many people who believe that showing a lower income on their form means lower taxes. That will be, but if you give incorrect information about your income, you will be in trouble with the IRS.
This is one of the most common mistakes. An accountant does not directly have to do anything with your form but if you hire one, they will make sure that your form has been carefully filled and contains no errors. Such for an accountant Orlando and then appoint the one who seems the most qualified for you and is in your budget as well.
You can avoid some of the above mistakes if you start using a tax software. At least, the calculations will not be a headache anymore, but you have to ascertain that you are inputting everything right.
Once you have filled out the form, be sure to go through it thoroughly. Your accountant Orlando will also do this for you. Hopefully, there will be no mistakes on your return then.
What You Should Not Do with Your Refund
Have you filled out your tax form? Are you expecting a return this year? That is great; we are sure you must have hired an accountant Orlando for this. An accountant thoroughly reviews your financial situation and expenses, and allows you to avail the maximum possible deductions and credits. This either drops your taxable amount or increases your refund amount.
So what are you going to do with your refund? Indeed, this is totally up to you, but we can still advise you what not to do with it.
How many of you are planning to spend your refund? We advise against it until it is absolutely necessary. Instead, save your refund amount. Let’s assume your refund is worth $3,000. You invest this amount every year and the rate applicable on this is 10%. After 20- years, this $3,000 will have turned into an amount over $180,000. Huge, is it not?
Not reducing your debts
How much amount have you accumulated in debt? Maybe, it is time to get rid of this. Use your refund for paying off your debt. We suggest that you start with the smallest one and then move onto the bigger ones.
Yes, your refund may not completely get rid of all your debts, but it is at least a start towards becoming debt free.
Not using it for lowering your taxes
You are done with your taxes for this year, and now have a refund to enjoy. What about next year? You want it to be somewhat the same, right? Why not spend your refund on something that will help you lower your taxable amount. Maybe you can donate the amount or spend it on some energy efficient purchase. Both are deductions, and will bring down you taxes.
Not creating something cherishing
You do not get a refund every year. If you are all that keen to spend it, do it on something that you will remember always. Maybe you can go to Paris or maybe you can go to an Asian country. Either use it for travel related purposes or buy something truly valuable from it. Anything that you will always remember is what you should spend your refund on.
Lending it to someone
Proud of your refund, are you? And been bragging about it? Not at all a great idea. Now everyone knows you have extra money with you, and they may ask you for a loan. Do not give it to them; should you not abide by this, you will not be putting your refund to good use, and it will just go to waste.
Not improving your skills
Were you saving some money for that great program or some certification course? Now is a great time to register yourself. Use your refund to improve your skills, and you will be able to land a better job when you put it on your resume.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. 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, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland 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.