Engelbrink CPA Firm wants to share the most important tax tips for individuals and business to be prepared by tax time.
Tax Tips For Individuals
Check your refund status
You can check for updates on the latest status of your refund by going to the IRS’s Get Refund Status website.
Get started early gathering your documents for tax preparation. Your tax preparer is less rushed and you will get your refund faster.
Adjust your W-4
If you owed any tax with the previous year’s return, then you might be eligible to adjust your W-4. Check with your employer to see if they will withhold additional income toward your taxes.
Filing an extension
You can file a 6-month extension if you file form 4868 by the tax due date of that year (usually around April 15th). You can use this time to finish gathering your tax documents and filling out your tax forms. The IRS will charge you interest on the tax owed, but you can avoid the late fee. There are several payment options available through the IRS.
Amended returns can be filed if you found you made a mistake on your original tax filing. An amended tax filing can also be used if you found you left something off of your return.
Ask us about how we can help you find all of the deductions you qualify for. Keep your receipts for charitable donations as these can add up quickly. Some of the cost of refinancing your home may qualify as a tax deduction. For those living in states like Texas where there is no state income tax, state sales tax can be deductible.
You need to keep in mind that in the United States, all income is considered taxable for US citizens. If you earn money outside of the US it will still be considered taxable income. Distributions from a pension or IRA are also usually taxable. We can help you find out more about your taxable income so you are prepared at tax time.
Name and social security number
The biggest life moments like marriage or a new baby can also affect your taxes. Make sure that the name and social security number the IRS has on file for you matches what the Social Security Administration has on file for you, otherwise you risk a delay or reduction of your refund.
Tax Tips For Businesses
Filing deadline and payments
While there is no extension on when payments are due for owed taxes, you can get an extension on filing if you use form 7004.
An IRS notice is extremely important. Do not disregard a notice from the IRS. Contact us for help with your IRS notice and it likely will be a simple matter to deal with.
Rights of appeal
You have the right to file an appeal if you don’t feel the IRS’s amount of your tax liability is congruent with what you believe it should be. There is a guaranteed right to appeal for all taxpayers.
Don’t forget your charitable contributions. Donations to charity on your company’s behalf can help reduce the amount of taxable income your company is liable for.
Call Engelbrink CPA Firm for any accounting or tax questions you may have. Schedule an appointment for professional accounting service today!
3900 Essex Lane, Suite 535, Houston, TX 77027
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