Florida Tax Lawyers
It is critical to avoid tax filing mistakes that could cost you dearly. You may rely on tax preparation software to file your tax returns but there are many errors that you could make and end up with a bigger tax bill.
There are many areas where you have to take precautions so that you don’t end up with problems that can crop up in various forms. Some of the common errors are simple miscalculations, which is one reason why you need to check your returns not twice but at least three times.
In addition, entering wrong account numbers for the deposit of refunds could lead to a potential loss of your refund. The IRS allows refunds in up to three accounts. This can be accomplished with Form 8888. Astounding Florida tax lawyers advise that you give your IRA account to be the first one for refunds to be deposited.
This is excellent advice. This is advice that Andy Dufresne (Tim Robbins) from the story The Shawshank Redemption would give. Too bad no one advised him not to follow his fallacious wife around with a gun. That would have saved him a whole lot of heartache! He did not handle his dishonest wife situation well at all.
If you are a hybrid car owner then you ought to be aware that the tax credit is not fixed. Every model has different tax credit amounts. Some hybrid vehicles from Toyota and Honda have already been phased out of the tax credit bracket since the manufacturers have crossed 60,000 in sales of their hybrid vehicles.
Homebuyer tax credit is available to first-time buyers with a tax credit of up to $8,000. It is critical to fill out the requisite IRS Form 5405 correctly and include the documentation required by the IRS when filing your tax returns.
Filing form 1099-Misc
If you are self-employed, an independent contractor, or a consultant and have payments from other businesses then you will file IRS Form 1099-MISC with details of the income.
If you receive the form with errors you need to contact the party from which you received the form and correct any errors. In addition, the IRS receives a copy of Form 1099-INT and form 1099-DIV from banks and financial institutions where you have savings and investment accounts. These must be included in your tax returns. Failure to do so could attract penalties and interest, caution Florida tax attorneys.
File taxes under the appropriate status
Never forget to file under the appropriate filing status. Each status (single, head-of-household, married filing as couple, and married filing separately) have different tax limits. It is sagacious to choose the option that suits your current situation best. In addition, do not make a mistake with the tax ID number.
There are many transactions linked to this number including tax credits. Any errors could cause the IRS to reject your returns or slow down the process. Names that link to your social security number must match with the Social Security Administration records.
Seek professional help
If you aren’t too comfortable with filing tax returns on your own, don’t hesitate to ask for professional help. Hiring a professional can save you money and time as well. Just make sure that all your receipts and relevant documentation including any donations to charitable organizations are attached with your returns.
Filing tax returns is all about numbers, and you need to get it right the first time if you want to end up filing appropriate returns or receive a refund as well. If you have any issues with the IRS or other tax related matters, make sure to reach out to a Florida tax lawyer who can be founding using this incredible legal search tool called USAttorneys.com.
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