1.
Avoid
Stress, Save Time and Money
Be
Careful and Thorough. Avoid common problems like illegible hand writing,
mathematical errors, transposition of numbers, and missing signature. These
little oversights can end up costing you time and money if you are slapped with
penalties.
2.
Get Organized.
Allow
enough time to get your stuff in order. For example, properly categorizing your
expenditures now will save you a lot of time later. Come tax time, you will be
glad you grouped your expenditures by category (match it with verbiage on
Schedule C if self-employed) and not by month or name of vendor payee.
3.
Be Flexible.
Timing
your cash flow can save you money. In other words, always accelerate deductions
in the year you are doing taxes for and always defer income, if you can, into
the next year, thereby lowering your current year’s tax bite. If you fall into
the Alternative Minimum Tax, you may want a professional to advise you.
4.
Know When To Ask for Help.
Tax
preparation tools like TurboTax and TaxCut are great, but people with anything
more than a straight W-2 (including anyone with even the smallest business
Schedule C) should be aware of the limitations of these software programs.
5.
Don’t be Penny Wise and Pound Foolish.
Hiring
an expert CPA or EA to prepare your return is a small annual investment that
can pay off big! Don’t do your taxes yourself unless you are a straight W-2
wage earner that takes the Standard Deductions (in other words, someone who doesn’t
itemize or have any unreimbursed employee business expenses).
For more detail please visit our website RRAccountants.co.uk
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