Everything You Need to Know for a Successful Tax Day
Tax day is an inevitable task that everyone must acknowledge, and it will bring a bit of angst along with it. This is normal. And as experts, we’ll tell you it can be seamless and bring with it a sense of accomplishment. The hidden fear behind tax day is that it’s difficult to master because some people make mistakes on their tax forms.
At Ash CPA, we are happy to share everything you need to know for a successful tax day. Print or save this guide for reference. As always, contact the professionals at Ash CPA with any questions and concerns.
Tax Filing Status
Revise your tax filing status. It’s simple. Have you undergone any life changes that would alter your tax status? Some of the most common examples are found below.
- Widowhood and qualified widower with a dependent child or children
- Taking care of an elderly parent
- Any other people that are dependent?
- Charitable Contributions
The filing statuses are:
For the more in-depth explanation of each status go to Understanding Taxes on the IRS website.
- Married filing single or jointly
- Head of household
- Widow with a dependent child or children
Revise Your Tax Withholdings
This is a delicate balance that you should review only with the human resources department at the workplace. Be aware of the associated penalties if there’s an imbalance.
The concept is simple. If you want access to more of your check, then withhold less. Just make sure the change does not create a tax bill in April. Also, consult a tax professional like Ash CPA. Tax experts can best advise you on how to manage your tax withholdings and other tax-saving strategies.
Have an organizational system in place and hold on to receipts for deductible items. You can find a list of acceptable deductible items on the IRS website.
An organizational system for all your tax forms, spreadsheets, receipts, and other pertinent paperwork is a must. Don’t paper hunt on tax day. If you have deductible items, save them according to date in case there is any question. You don’t want to trigger an audit.
What Are Your Charitable Deductions?
You can’t claim a round number of charitable contributions. Instead, itemize them using receipts separate from the other deductible items.
Are you on an estimated tax plan? Are you self-employed and paying quarterly? Consult a tax professional for a tax health checkup. Tax laws catch many people off guard when they owe an estimated tax because they paid too low or not at all. For instance, many self-employed professionals experience this issue each year.
The aforementioned steps are beyond your basic gathering of forms and income information. They are the elements that most will overlook or be unaware of. However, familiarizing those four areas can save time and avoid issues.
The next and last most important step is to seek professional guidance from a tax expert. Remember, tax laws are always changing. It’s best to stay ahead of your tax obligations with a professional like Ash Wasilidas, CPA from Ash CPA. New and existing clients should call (617) 462-6651 to book a consultation online. Our firm offers a variety of accounting solutions to assist individuals and business owners.