Tax Tips – Part One: 1 to 5
While the tax deadline seems to sneak up on most, our team at E&Y Agency is gearing up for another busy season as they work with Troy, Michigan residents on their individual and small business taxes. This years’s taxes are due on Tuesday, April 17th and the E&Y team is prepared to anything… from those who have already dropped off their 2017 receipts to those who come in on the due date ready to file.
Tax Tips: Questions, Questions, Questions
“When your friends and family know that you’re a tax expert, the questions come fast and from all directions,” says Alex Elizarov, Managing Partner. “Everybody wants professional advice and tips on how to maximize their return or reduce the amount owing. When we get into in-depth conversations on the intricacies of the tax laws that’s where I lose people and they typically are happy to just hand over their information and leave it in my hands. However, as your taxes are ultimately your responsibility, it’s important to be engaged and knowledgeable.”
Here is our compilation of Tax Tips questions we get asked most frequently in, and out of, the office:
Q. Are there any benefits to filing early?
A. While there are no “rewards” for filing early, there are many benefits, including reduced stress levels compared to those who wait to the last hour to file; time to make a plan if you owe money; and interest earned from your refund in your bank as soon as possible. So don’t wait, no matter how much you hate tax time.
Q. Which receipts should I save during the year? What can I write off?
A. Depending on your work / home situation, the tax receipts vary, but here is a good overview of what you should be keeping on hand and providing to us:
Bring us everything you have and we’ll let you know what we can use.
Q. Can’t I just do my taxes myself?
While you can do your taxes on your own, there are so many intricacies to deductions and rules that you might not be aware of and may not take into consideration. For best results and to avoid future headaches, we recommend taking your taxes to a tax expert.
Q. What happens if I don’t file by the deadline?
A. If you are expecting a refund there is no need to panic. You have time to file your taxes before the statute of limitations on a refund runs out (October 15, 2021). If you owe… that is another story. There are financial penalties for filing late, so get them in as soon as you can. Even if you can’t pay the taxes owed, the penalties will be less severe if you at least get your paperwork filed.
Q. How long should I hold onto my receipts / tax papers?
A. The IRS recommends that you keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
Tax Tips: More questions & answers are in Part 2 of this blog..
If you have even more questions, please contact our reliable and ethical Tax Service Team as soon as possible. The more time you have to compile your tax information, the more likely you are to take advantage of every little benefit.
Call us at (248) 817-8071 … no commitment required to call, just an informational chat!
