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Tax Tips: How to Choose a Tax Preparer


Are you stuck on choosing a Tax Preparer?

“One size fits all,” doesn’t apply when choosing your tax preparer. Take a second to imagine this scenario. John is a college student and it’s time to file his taxes for the very first time. Nerve wracking, isn’t it? He has one W-2 statement and a myriad of education expenses that surely affected his bank account. He’s unsure of where to begin and if he should simply file online or visit a tax accountant.

Whether you’re new to taxes, like John, or an experienced taxpayer, filing your tax return can be a demanding process. On top of that, you might be wondering if you should file your tax return online or go to a local tax accountant. Here are some tax tips to consider when making that decision.

Online filing may be right for you.

During tax season, convenience, quality and time are both important. By filing your taxes online, you can complete a self-prepared return by opting to e-file your current year tax return or paper file your prior year return right from the comfort of your own home. Tax preparation sites require you to have: Continue reading “Tax Tips: How to Choose a Tax Preparer”

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No W-2 – What Do I Do?

You worked for a company, it folded, and now you’re out a W-2. Or so you think. Your place of business has until January 31st to send out your W-2, and it won’t be considered officially “late” until after February 15th comes and goes. In other words, if you’re waiting now, you’ll have to keep waiting for another couple of weeks. Don’t panic if your former employer goes under, though. Sometimes, a trustee will be set up in bankruptcy court to handle all the details (like the sending out of W-2s!), but ultimately, W-2 forms are the business’ former owners’ responsibility.

But let’s say you can’t get hold of anyone to send you out your final W-2. What do you do?

Well, you have a number of options. The best and easiest solution is to go through your paystubs and find the data from your final paycheck. All your deductions – FICA, medical, Federal, state, etc. – will be listed somewhere on the stub. 99.9% of those will keep a running total of the total amounts, thereby solving your problem. If you don’t have either available, it’s time to get on the phone to the IRS and listen to some “On Hold” musak.

If you’re up against the wall waiting for your W-2s, you have until the 15th of April to file for an extension. Remember, though – your extension gives you extra time to file, but it doesn’t give you extra time to pay if you owe the IRS a red cent. This is one that catches many tax payers by surprise, year after year.

Finally, if you’re ever in doubt, call the IRS and ask for the definitive answer straight from the source.

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Double-check Checklist

Before you guffaw and navigate away, listen to this: the list below is created from the IRS’s list of most common (and sometimes, expensive) yearly filing mistakes. Our list is meant to be a simple catalog of things to double-check before you lick the stamp or mouse-over the “send” button on your tax filing.

If your eyes are straining from rolling too much, we suggest you simply bookmark this page for the final seconds prior to your sending off for your return. Why?

The IRS charges 6% interest and up to a 20% penalty for incorrect filings. A double-check can save you tons of time, and possibly, tons of money.

  • Did you include your W-2?

Obviously this won’t be a problem for e-filings, but for our snailmail brothers and sisters, it’s one of the most-repeated mistakes.

  • Did you write the correct social security number?

Go over your return and see if you didn’t forget a digit, or mix your wife’s with your own. It’s a silly mistake that can cost you time or money (or both), and the IRS says it’s the number-one “whoops” mistake.

  • Did you file under the correct status?

Easy to slip up on this one if you’re recently married or separated. Same level of “whoops” in the IRS mistake list.

  • Did you claim new home credits too early?

You must have closed escrow by January 1, 2010. Anything after that has to wait for next year. Sorry.

  • Did you report all your income?

No problem for anyone who’s worked at the same job for umpteen years, but if you’ve been floating about doing work for multiple employers (or, gulp, a now-defunct business), it can be tough to keep track of all the W-2s you’re owed.

  • Did you report all your charitable giving?

If you’re just starting now, it’s a little late, but make sure you keep receipts for anything and everything you give away to charitable organizations. Anything valued over $200 has to have a corresponding receipt. If the IRS comes-a-auditing, be prepared to whip out your receipt logs, or you’ll have an uncomfortable amount of ‘splainin’ to do.

  • Did you report all your mileage?

Same as your charitable giving, above. Make sure you keep an immaculate log. Again, the IRS expects you to keep your records for at least five years, and they’ll expect you to have those records ready for display whenever they’d like a closer look.

  • Are you sure your “dependent” is actually a dependent?

Visit the IRS’s website and make darn sure your hanger-on qualifies as a dependent.

If this list saves just one person a week’s worth of waiting for a much-needed return, then our post will have been worth the effort!