Although the April 17, 2018 deadline for tax returns is still a few weeks away, there is definitely nothing wrong with getting a head start with your computation. After all, it’s better to start early since this will give you enough time to properly compute the taxes you owe and make any adjustments as necessary.
Unfortunately, not everyone understands the intricacies of computing taxes, which may lead to mistakes in the computation. This may seem like an innocent error, but these mistakes could lead to the IRS knocking on your door and asking for an explanation—and that’s a kind of stress you’re better off avoiding. One of the best ways to do that is to employ the assistance of a respected Nashville CPA firm, like Evan Hutcheson, CPA, LLC.
Of course, there are other steps you can take to help ensure that you file an accurate tax return and reduce the amount of stress that you have to face. These include:
Keeping Track of Charitable Donations
It is no secret that a certain amount of charitable donations can be used as a tax deduction to reduce the amount of money you owe the IRS. Take note, however, that this deduction has certain stipulations that must be met. For one, you must have donated (in cash or kind) to a charitable organization that has been qualified by the IRS. Keep track of all items donated, as well as their fair market value, to make computation easier for you.
Digging Up Your Tax Return from the Previous Year
Some people make the mistake of filling out a completely blank form off the top of their heads. What they don’t realize is that many of the boxes that need to be filled in will carry the exact same values as last year’s tax returns. Spare yourself the agony of spending endless hours computing things by hand and dig up last year’s tax return and simply copy the appropriate information.
Consulting a Professional on Which Deductions Will Net You the Most Savings
There are many ways to apply tax deductions to your tax returns. However, many people do not realize that certain deductions will actually net them bigger savings. This is another advantage of working with a trusted CPA firm. A certified public accountant knows tax guidelines like the back of their hand and can easily help you apply the right deductions to maximize the amount of money you save.
Sources:
Tips for Doing Your Own Taxes, Time.com
Top 10 Individual Tax Breaks, Money.USNews.com
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