JACKSONVILLE, Fla. -- This time of year many Americans struggle with getting their tax return filed timely and properly. You may be among them and feel you can't do it yourself. So how do you choose a tax preparer?
Here are ten things you can do to get you through the income tax filing season.
Number Ten:
Make sure you have all of your documents, including all of your W-2 forms. Your employer had until January 31st to mail it out. If it is still missing and you don't receive it by February 14 contact the IRS at 800-829-1040 for assistance.
Number Nine:
If you need a professional to help file your tax return, before you choose a tax preparer, check their qualifications. They're now required to have a (PTIN) tax preparers identification number from the IRS.
Number Eight:
Ask about the service fee. Avoid any preparer whose fees are based on a percentage of your refund or they claim they can get you a large refund. You don't have to pay a preparer $700 to file a return on the $12 thousand you earned last year.
Number Seven:
Review your return and make sure the preparer signs it with his PTIN. Even though the preparer signs it you are responsible for the accuracy of the information. If there's a problem like the preparer being abusive, do not hesitate to report him/her to the IRS.
Number Six:
OK, so you're self employed. There are benefits from being your own boss, but you'll have to pay self employment tax as well as income tax. Self employed can include work in addition to your full time job.
Number Five:
If you're employed in a service industry and tips make up your income, those tips are subject to taxes. Hopefully you have kept a good running log of your tip income to avoid penalties.
Number Four:
If you're a parent there are benefits, but these two are easy to miss. The American Opportunity and Lifetime Learning Credits can reduce your taxes dollar for dollar, and you can also deduct the interest paid on student loans.
Number Three:
If you're income is $57 thousand or less, file your tax return for free through the IRS free file program. Go to www.irs.gov/freefile. Or you can turn to an organization like the United Way Initiative called Real Sense, the service is free.
Number Two:
Protect your identity: be careful with whom you share your tax return information, like your social security number. If that information gets in the wrong hands someone could fraudulently file a claim using your identity and claim your refund.
Number One:
Don't get scammed by cyber criminals. If you receive a suspicious email or letter that claims it's from the IRS it could be someone phishing for your information. The IRS will never ask for personal or financial information in this manner, and the IRS does not contact taxpayers by mail or email asking for this type of information. Buyer beware.
Those are Ken's top ten ways to get through the tax return filing season. That is if your return is not complicated and does not require the help of an accountant.
First Coast News