The deadline to file your 2013 tax return is April 15, 2014. Many people look forward to filing their taxes each year because they will receive their tax return. When you file your taxes you goal should be to do so accurately to ensure that you receive the correct tax refund due to you. Every year you can expect a few things to change on the tax forms. For example you may be able to take more deductions in one area while taking less in another area. It is important to educate yourself on these changes in an effort for how to avoid a tax audit.
These three articles will help you get ready to file your taxes and give you a few tax updates you have not have been aware of.
According to this article in The Week individual tax audits are rare but you increase your chances by being dishonest on your return or filing your return with errors.
"Do you ever wonder how the IRS chooses which taxpayers it wants to audit?" asked Daryl Paranada at The Motley Fool. While individual tax audits are rare, mistakes on your tax return — such as putting down the wrong Social Security Number or fudging your math — are one way to "give the IRS pause." Another is incomplete or missing information. If you're itemizing your deductions, don't "overstate your deductions or lie about them. The IRS is well aware of what is outside the norm for people at your income level." And "if you do pull a fast one on the IRS, think twice before you brag about it." The agency offers whistleblowers a reward of up to 30 percent of the money it collects from tax evaders."
If you are self-employed this article will help outline some things that have changed that may change the way you prepare your 2013 tax return.
If you claim a home office on your tax return you may want to use the IRS’s new method for calculating the deduction. You can now take a straight $5 per square foot deduction for up to 300 square feet, for a maximum total deduction of $1,500. You should also run your numbers the old way, based on the percentage of your home dedicated to your business activities by tracking utilities, insurance and depreciation and see which method is better for you. Another important factor is that the mileage rate has also increased on cent to 56.5 miles.
If you’ve had a change in income, sold real estate or file for bankruptcy it is important to know that you may need to prepare for certain tax expenses you had not expected. In this case the best solution for how to avoid a tax audit is to hire a tax professional to prepare your return. Currently, 57% of tax returns are prepared by professionals and for good reason.
Having trouble fitting in an appointment to get your taxes done? Consider looking for a tax professional that will help you multi-task!
Filing your annual tax return takes a lot of time. You have to gather receipts and tax forms and track expenses to ensure you haven’t forgotten anything. For many American’s scheduling the necessary time needed to sit down with a tax preparer may be another hardship. In New York City one tax preparer office has teamed up with a local laundromat to try and make it easier for people to get their taxes done. Broadway Professional Services Inc. (BPSI) has tax professionals on site to take walk in appointments for patrons with all their paperwork in order. The appointment takes the same amount of time as the wash and dry cycles.
Americans spend a lot of time – and money – plowing through taxes at tax time. Taking into consideration the time it takes to fill out the forms, assemble receipts and other documentation and read the rules, the IRS estimates that it takes the average taxpayer 13 hours from start to finish for a form 1040, 1040A or 1040-EZ (keep in mind that the average is boosted by those filing more complicated returns, including a Schedule C, E or F). If you assume that there are 140 million taxpayers, that means that Americans spend nearly 1,820,000,000 hours on individual federal income tax returns (again, including preparation and planning). That’s 45,500,000 work weeks. Yes, weeks. And while that number could be high – depending on the kind of return you have – even assuming a factor of two, that’s still a lot of time.
Tax time can be stressful even if it ends with a tax refund. If you are going to file your own taxes your efforts should be focused on how to avoid a tax audit by making sure that your taxes are filled out completely and accurately. Another benefit of a paid professional is that they can help you navigate through any complications such as filing taxes during bankrtupcy and filing taxes after buying or selling real estate.
If you ware currently going through bankrutpcy you want to make sure you talk to your Chicago bankruptcy lawyers before filing your 2013 taxes to ensure that everything is done correctly for the best outcome for you.
DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.