As we slowly creep toward the end of the year, you should be starting to think about filing your taxes. We know it might seem early considering it’s not even winter yet, but planning ahead now can help you save yourself quite a bit of time, money and frustration once April hits. The best way to begin is by learning the secrets only the professionals at a tax service in Des Moines, IA are likely to know about filing taxes. Knowing this information before you file can help you pay a lower amount without being flagged by the IRS.
To help you get started, the experts at Accounting & Tax Professionals, PLC are here to provide you with five tax secrets you will want to remember before filing:
- Don’t panic about the April 15 deadline: Forget everything you have ever heard about this feared deadline. While you should try to have your taxes filed by this date, you won’t be penalized if you forget to mail it until the next week. The IRS offers a 6-month extension for filing federal income taxes without any penalty. Remember this extension only applies to filing. You still have to pay any amount owed by the deadline.
- You shouldn’t count on that IRA rollover: Previously, taxpayers were able to move their funds from one IRA to another within 60 days without any consequences. This was a great way to get a short-term loan without paying the additional taxes. But that’s no longer the case. A 2014 decision changed the rules so taxpayers can only complete one IRA rollover annually. Any more than that and you can expect to trigger a sizable tax penalty.
- Be prepared to pay taxes on Bitcoin wages: The IRS isn’t fooled by this tech-savvy form of currency. All wages paid with Bitcoin need to be declared on federal income tax returns, according to the IRS. Don’t be caught off guard by the fact that Bitcoin is still subjected to tax withholding, payroll taxes and unemployment taxes.
- Not all income tax is equal: If you are paying the same taxes on all of your income, you should be concerned. Expect to pay income tax, Social Security and Medicare on traditional earnings, but any income from investments shouldn’t be hit by employment taxes.
- Spend the money if your filing is complex: There are lots of times when being thrifty is great, but filing your own taxes isn’t one of them. Trying to save money by completing your taxes on your own can end up costing you more money in the long run. Missing big deductions or having to be audited will force you to pay more than you should, or shell out hundreds of dollars in interest fees. A professional tax specialist will help you find the biggest deductions and ensure your taxes are done right the first time.
You get access to all the tax secrets by hiring the experts at Accounting & Tax Professionals, PLC. Call us today to learn more about how our tax service in Des Moines, IA can help you save!