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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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Do I Claim Zero, One, Two W-4 Allowances?

The last thing you want to do is frantically run up to your boss asking “How many allowances do I claim on my W-4?”.

Being aware of the number of allowances you are claiming on a Form W-4 [Employee’s Withholding Allowance Certificate]  is important for a variety of reasons. Most importantly, the number of allowances you claim on a W-4 determines the following;

  1. how much tax will be taken from your income (aka the withholding amount)
  2. the size of your tax refund

Steps to filling out a W-4

You’ll need to follow four simple steps when filling out your W-4 Form:

  1. Fill out your personal information (Name, Date of Birth, Address, Marital Status)
  2. Know the number of personal and dependency exemptions you are claiming on your tax return.
  3. Based on the number from step 2, use that number to help determine your number of allowances.
  4. Don’t forget to sign the W-4 and turn it into your employer!

The allowances you claim while filling out a W-4 if you are single will differ from the allowances you claim if you are married or have kids.  Continue reading “Do I Claim Zero, One, Two W-4 Allowances?”

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Delay in State Tax Refunds for 2016

Identity theft is real, and it is REALLY affecting when we get our state refunds.

Remember being in elementary school, when your teacher would tell the class that if one more student misbehaved, then the entire class would be forced to sit inside for recess that day? There was always that one kid who would ruin it for everyone.

That is similar to what’s going on with identity theft affecting state refunds this year. State revenue departments decided that there were too many cases of fraudulent activity and that they needed to do something. This means that refunds are being delayed a bit in order to double check certain taxpayer information.

Let’s take a look at the states that took a little extra precaution this 2016 tax season.

Illinois and South Carolina

These guys put provisions into play from the very beginning of the season. If you filed your state return in January or February, then you wouldn’t have seen your refund until at least mid-March. On top of that, if you filed your return after March 1st, 2016, then your refund was sent approximately three weeks from the date it was accepted.  

Hawaii

Taxpayers could be waiting for their state tax refund anywhere from four to sixteen weeks after being accepted. Good thing that Maui ranks as the #1 vacation spot in the U.S.! You won’t need to travel too far to relax and forget about the lack of refund money you’re waiting on.

Idaho

Identity theft in the Great Potato State has increased by nearly 64% since 2014! Extra safety measures means taxpayers will be waiting about seven weeks for their state refund from the time it is accepted. The ID Department of Revenue recommends responding ASAP to any letters you receive from the Tax Commission to speed up the processing time. Continue reading “Delay in State Tax Refunds for 2016”