As tax services Orlando professionals we know that a lot of American tax payers make mistakes when they are facing the descending tax season. Here is everything that you need to learn to avoid when you are filing taxes in Orlando.
Do Not Put It Off
The most common tax services Orlando mistake that most people make is not filing their taxes on time. It is always tempting to put off the stressful ordeal of having to face and deal with your finances and saved receipts. The best option in such a scenario is to reach out to some good tax services Orlando and ask for their help and expertise on filing your tax returns on time. The IRS charges interest at an annual rate when it comes to filing late. And if that is not enough the RS also charges a late penalty fee, which is 5% of the amount owed each month. In other words the longer you take the more you will have to pay in the form of penalties and interests.
The IRS also found that people who make last minute tax filing preparation tend to make more errors as they wrap up the whole process in a hurry. That is whey its good to go to your tax services Orlando early in the year.
Did you know that people also tend to make a lot of math errors when they are working on their taxes? For people who tend to make this mistake, it is recommended that they use tax services Orlando tax services Orlando pros. The IRS checks these errors and sometimes a tax payer may owe the IRS money for providing with the wrong calculations.
Keep In Touch With What Is Happening In the Tax World
It is good to stay in the loop with the latest tax code. Always check the IRS website before you start working on your taxes with tax services Orlando. This way if there are any changes you will apply them accordingly. Always pay close attention to tax credits and deductions when you file. You may end up paying too much like so many Americans who do every year. It literally pays to never miss a tax break.
Get Your Facts Straight
There are several different forms that people use when filing for tax returns with tax services Orlando. It is easy to get confused which form to choose from the 1040, 1040A and 1040EZ when filing individually. For this the IRS recommends that you go for the simplest one, to prevent from making errors.
Check One Status
The status that you have checked has a direct impact with the kind of deductions that you are allowed to make. Several areas may cause confusion. For instance, you may be single and also the head of a household. Checking for head of the household will get you a larger deduction.
What Is the Health Exemption Form Exactly
Health insurance is something that no one should have to live without. The IRS has listed not having health insurance coverage subject to being penalized. That being said, for people who cannot afford the health care coverage, for financial, religious or any other reason, the government lets you apply for an exemption when you do your taxes in tax services Orlando.
Filing an exemption to the penalty is not that hard. You just need to know what are the right forms and details to get your hands on. There are tons of tax services Orlando that will help you out with this.
Can You File For An Exemption?
Not everyone can. The federal government has listed strict guidelines for this. You need to fill out a paper application and send it to the health insurance marketplace to get their approval on being eligible for exemption. Once you are approved you will get an exemption certificate number that is to be included on your tax return you do with tax services Orlando. In most cases an exemption is granted without an application. The people who do not need to apply for this are low income households who are exempt from such a penalty, as they earn less than the filing threshold for their tax status. Also people who are uninsured (around less than three months) are also exempt from this. Always consult tax services Orlando to make shure you are exempt.
A good tax services Orlando expert will tell you that this can only be granted where personal and financial setbacks make it difficult for you to get health insurance. But what exactly is hardship defined as? The ACA (Affordable Care Act) recognizes situations such as the following several as hardships:
Bankruptcy shut off notice from utilities, Eviction, Domestic violence, Death of a family member, prolonged illness of a family member, and debt from medical expenses.
Of course to claim for a hardship exemption you need to provide with proof as well. The best tax services Orlando professional will tell you that you need copy of the eviction notice, copies of medical bills unpaid, copy of death certificate etc.
If you belong to a religious sect that forbids insurance, then you do not need to provide any additional documentation. A statement recognizing your membership in the sect is all that is needed. If you are a member of an ethnic group, for example a recognized Alaskan or native American tribe then you are probably eligible for health care via the IHS (Indian Health Service). You are required to submit a letter from the IHS or simply your birth certificate.
There are 5 more exemptions to the individual mandate that are recognized by the ACA. The most common one is where you prove that the cheapest health insurance policy costs you more than 8 percent of your annual income.
It is good to get your facts straight with tax services Orlando before you file for an exemption before you prepare your taxes.
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 number, incorporations, and non profit 501c3 tax exempt.