Extension Filer Reminder: Choose a Tax Preparer Carefully

Hi, esteemed members of the taxpaying community! If you are anything like me, there have been occasions when filing taxes would have made you stressed out. You may have even asked for an extension, believing thusly, “I am going to arrange my stuff later”. However, do not forget that these extension dates approach rapidly and now is the best moment to select a person who will prepare your taxes accurately. Read on about Tax Prepare Selection.

Tax Prepare Selection
Tax Prepare Selection

Why Choosing the Right Tax Preparer Matters

Here are some reasons why selecting an appropriate tax preparer holds great importance. Consider it in this manner, a financial confidant is the tax preparer. They are privy to all your most personal data, and you would want to ensure that they are reliable and knowledgeable. A competent tax preparer can save you a lot of cash and frustrations, while choosing the wrong one can result in errors, audits as well as sanctions.

My Personal Tax Preparer Story

Let me share a little story from my own experience. A few years ago I was in a hurry to file my taxes and decided to go with the first preparer I found online. Big mistake. This person seemed knowledgeable at first, but as the process went on, I started noticing errors and inconsistencies in my return. I ended up having to redo everything myself, which was a huge headache.

The next year, I did my homework. I asked friends for recommendations, checked credentials, and even read reviews. I found a fantastic preparer who not only got everything right but also gave me tips on how to save more on my taxes in the future. The difference was night and day.

Tips for Choosing a Tax Preparer

So, how do you avoid my initial mistake and find a great tax preparer? Here are some tips:

  1. Check certifications: Make sure the tax preparer has the right qualifications. Look for certifications like EA (Enrolled Agent) and CPA (Certified Public Accountant).
  2. Get Recommendations: Talk to friends, family, and/or colleagues who have had good experiences with tax preparers in the past.
  3. Read Reviews: Online reviews can reveal the reputation and credibility of the tax expert.
  4. Interview: Don’t be afraid to ask questions. Learn about their experience, fees and how they handle accounting.
  5. Ensure year-round availability: It’s important to appoint someone to be available to answer questions or solve problems even after-tax season is over.

Final Thoughts

The significance of selecting an apt tax preparer cannot be overestimated. It’s essential to take your time, do thorough research and avoid choosing the first alternative that pops up. After all, ensuring your financial well-being necessitates such endeavors.

Bear in mind that those who wish to extend their filing dates should do so by October 15th; thus, don’t procrastinate. All the best in filing and may you receive a bumper refund!

Maximizing Your Deductions: A Comprehensive Guide to 2022 Tax Reductions

Don’t miss out on potential tax savings! This comprehensive guide to 2022 tax deductions will help you maximize your deductions and reduce your taxable income.

Guide to 2022 Tax Reductions
Guide to 2022 Tax Reductions

As the new year approaches, it’s time to start thinking about potential tax savings. The good news is that there are various deductions and credits available that could lower your taxable income and reduce the amount you owe in taxes. In this guide, we’ll provide an overview of 2022 tax deductions, so you can make informed decisions as you prepare your tax returns.

Keep detailed records of your expenses.

One of the most important steps in maximizing your tax deductions is to keep detailed records of all your expenses throughout the year. This includes receipts, invoices, and other documents that prove you incurred the expense for business purposes. By keeping accurate records, you can claim deductions for expenses such as home office expenses, travel expenses, and entertainment expenses. If you fail to keep accurate records, you may miss out on potential deductions and could be subject to penalties if your tax return is audited. Consider using accounting software or hiring a professional accountant to help manage your records and ensure compliance with tax laws.

Take advantage of charitable donations.

Charitable donations can be a great way to maximize your deductions and reduce your taxable income while also supporting a cause you care about. Be sure to keep detailed records of all charitable contributions, including the name of the organization, date of the donation, and the amount donated. Donations that exceed certain thresholds may require additional documentation such as a receipt or acknowledgement letter from the charity. Also note that in order to claim a deduction for charitable contributions, you must itemize your deductions on your tax return rather than taking the standard deduction. Make sure to review IRS guidelines for eligible organizations and allowable deductions before making any charitable donations.

Deduct business expenses, including home office expenses.

Running a business can be costly, but many of these expenses can be deducted to reduce your taxable income. This includes any costs directly related to your business, like rent for an office space or equipment needed for job functions. If you have a home office, you may also be able to deduct a portion of home-related expenses such as mortgage interest, utilities and property taxes. However, it’s important to ensure that your home office meets the IRS criteria for eligibility before taking this deduction. Keeping detailed records of all business expenses is crucial for tax purposes and will help you maximize your deductions while minimizing the risk of an audit.

Don’t forget about educational and employment-related deductions.

In addition to business-related deductions, there are various educational and employment-related deductions that can help lower your taxable income. If you paid for any training or courses that were necessary for your job or business, you may be eligible for a deduction. This also applies to tuition and fees for post-secondary education. Additionally, if you moved due to a job change, you may be able to deduct moving expenses. Keep in mind that specific requirements and limitations apply to each of these deductions, so it’s important to consult with a tax professional or refer to the IRS guidelines before claiming them on your tax return.

Utilize retirement account contributions for major tax savings.

One of the most effective ways to maximize your tax savings is by contributing to a retirement account, such as a 401(k) or IRA. Not only does this reduce your taxable income, but it also helps you save for retirement. For the 2022 tax year, the maximum contribution limit for a 401(k) is $20,500 and $6,000 for an IRA. If you’re over the age of 50, catch-up contributions of $6,500 and $1,000 are available for these accounts respectively. Additionally, some employers offer matching contributions to their employees’ retirement accounts which can further boost your savings potential. Be sure to take full advantage of any retirement plans available to you to maximize your deductions and plan for a secure financial future.

Turbotax Max Benefits

MAX is an optional add-on package for paid versions of TurboTax Online that offers a variety of benefits and personalized assistance after you file your taxes. Turbotax MAX benefits include Live Review, where a certified tax expert reviews your return and answers your questions about it or anything else related to taxes. You can also get detailed guidance from our CPA on how to maximize your tax savings with personalized advice based on your unique situation.

Turbotax Max Benefits
Turbotax Max Benefits

Audit Protection

Protect yourself from potential audits by the IRS. During tax time, TurboTax provides you with a dedicated expert who will represent you and communicate with the IRS on your behalf. With audit representation included with TurboTax, you can rest easy knowing your taxes are in good hands.

Identity Proof

Protect your identity and get help fast if it’s ever stolen with the maximum benefits of full identity restoration. If you or your taxes are ever the victim of identity fraud, we’re here to help. Max Identity Protection covers both the primary and secondary filer, their spouses and dependents in addition to other tax-related services like live tax advice from our experts.

Identity Monitor

With TurboTax Max’s Identity Theft Monitoring, you’ll have peace of mind knowing that if suspicious activity involving your personal identity is detected online, you’ll be notified right away, and a Dedicated Restoration Specialist will be able to assist you in responding quickly to protect your identity. Monitoring covers both the primary and secondary filer (if filing jointly).

Now you can receive alerts to help protect your identity and safeguard your file. If suspicious activity related to your personal identity is detected online, you’ll be notified promptly and a Dedicated Restoration Specialist can help you quickly react to restore your identity.

Theft Insurance

Identity theft is one of the country’s fastest-growing crimes. Protect yourself and your family from it with our Identity Theft Insurance, which reimburses you for stolen funds and pays for legal fees and expenses caused by identity theft. Both the primary and secondary filer are covered if you file jointly.

TurboTax Max Protection keeps you covered with identity theft insurance and gives you peace of mind while you file your taxes. You’re covered if someone steals your identity and files fraudulent tax returns or uses your personal information to commit other financial crimes. You can recover stolen funds and pay for legal fees and expenses.

TurboTax MAX Top Care

Priority Care is an exclusive benefit for customers who file a federal return through the TurboTax desktop product. If you need help with your taxes, TurboTax will connect you to a TurboTax product specialist by phone or video chat. They will draw on your screen to explain how to handle issues that come up while you’re filing.

2022 Step by Step EASY TurboTax Tutorial: How To File Your Own Taxes This Year!

Watch Out For IRS Tax Scams

There have been reported incidents of swindlers using an IRS pitch as a IRS Tax scam. One such incident happened to Brett. He panicked after hearing a phone message that the IRS was about to investigate him. Brett is a 43 year old contractor from the County of Morrow. He wondered whether he had missed anything in regards to his Free Turbo Tax application. So he decided to make a call back and then his worry turned to anger. There are lots of scammers out there especially as the Tax period gets near. More about IRS Tax Scams:

IRS Tax Scams

At this time of the year, thieves and con artists fine tune their tricks and up their game in order to swindle individuals, often threatening them with jail terms and deportation. The IRS has now issued an alert to the public, warning of the phone scam and other scams people are likely to be exposed to at this time of making their tax returns. Turbo Tax should help people allay their fears in regards to their 2016 taxes.

IRS Tax Scams
Photo by Judith E. Bell 

The Ohio State Attorney General has been fielding questions and complaints from local residents, especially those from the counties of Morrow, Fairfield and Franklin. It is expected that con artists will pull scams pretending to be from the government as this helps their scams seem more legitimate.

Claims that TurboTax Fraud May also Affect Federal Returns

Now that the tax season is here, the fears about TurboTax fraud is more punctuated than ever before. Taxpayers were shocked when they heard about TurboTax suspending state tax filings over fraud concerns. Imagine getting the news that someone else filed your tax returns and claimed your hefty tax refund. Fortunately, this problem only affected the state filings, not federal taxes.

TurboTax Fraud
Photo by Images_of_Money

Well, this has changed. The details may be sketchy, but the FBI is now investigating claims that federal tax returns may also be affected by this fraud, putting your tax refund in jeopardy. The bureau interviewed taxpayers who claimed that IRS data was compromised, leaving room for fraudulent activities.

Imagine getting a message from the IRS acknowledging receipt of your federal returns even before you do your taxes. Given that all tax filings are done electronically, fraud has become a big threat.

While TurboTax 2015 free version allows taxpayers to make free tax filings, a rival, H&R Block, took advantage of the fraud cases surrounding TurboTax to attract taxpayers who did not want to fall victim to identity theft, among other types of fraudulent activities.

However, it is important to note that no system is perfect, especially when you consider the fact that both the IRS and most states had already put in place sophisticated systems to detect and help prevent theft.