Taxes are due April 15, 2014. We know…they come sooner than expected every year. Here are a few quick tips to help you get your taxes done efficiently! Also, don’t miss out on a few other tips in order to avoid IRS red flags on your tax documents.
Six Tips for the 2013 Tax Season*
1. Begin the process early, but don’t necessarily file early.
2. Contribute to a tax-advantage account to reduce taxable income.
3. Take advantage of time savers.
4. If you’re a high earner, see whether you underpaid taxes.
5. Purchase health insurance by March 31st if you aren’t already covered.
6. Use your 2013 tax return to start planning your 2014 tax strategy.
*Source: Fidelity Investments
IRS’ Red Flags
Don’t miss out on the spring weather by sitting inside and doing your taxes last minute. If you haven’t started them yet, get started at GCU with our tax preparation services. It is a convenient way to get your taxes done stress-free. Here are a few tips that we have found useful to get rid of any IRS red flags while filing for taxes:
-Understand that the more income shown on your return the more likely you will be hearing from the IRS.
-Report all taxable income. The IRS receives copies of all 1099s and W-2’s you receive, so make sure you report this income as well. Deducting business meals, travel, and entertainment can be an audit red flag. For those who are self-employed, it is recommended to not claim excessive deductions.
-Small business owners who have a cash intensive business are less likely to accurately report all of their taxable income. Remember that the IRS has a guide for agents to use when auditing cash-intensive businesses.
-Lastly, if your deduction is large compared to your income, the IRS might pull your return for review. Determines that you have proper documentation for your deduction, and don’t be afraid to claim it.
Time is of the essence, so be smart while preparing your taxes!
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