Tuesday, June 18, 2013

How to Save Money on Taxes - Tip 4

Leave no tax deduction or credit unreported. Making certain that you don't leave any deductions on the table is the single best way you can save money on your taxes. With the IRS, the rules are always changing, so keep up with them, but if you do, the rewards will be there. And don't be afraid to take all the legit deductions you have available. Have courage. Like the TV commercial says, it's your money. 
 
And pinching pennies may be a noble way to think in some cases, but when it comes to your taxes its totally worth it to hire a good CPA. You'll avoid a lot of unnecessary headaches and a tax professional's knowledge of the tax code can help you save money.
 
It's okay to use tax software programs when filing your taxes. Today's options are quite helpful and they are programmed to give sound advice in certain areas, but robotic responses don't generally allow for much give and take discussion. And the IRS offers quite a bit of sound information if you can work your way through the verbiage. 
 
And check your work. And then check it again. Make sure it's complete and that you've signed and dated it. If you make a mistake, it could trigger an audit, something that is about as much fun as a root canal. 
 
If you can't file your taxes on time, don't forget to file an extension. And make sure you send them some money, if you'll have to pay additional taxes. If you don't pay at least 90% of what you'll owe, they can hit you with some very steep penalties.

If you have questions, call Neikirk, Mahoney & Smith at 502-896-2999.

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