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A: No. Filing an extension only extends the time you have to file your tax return. It does not extend the time you have to pay your tax liability. There are various options available for paying your tax liability however. IRS now accepts credit cards (there is a fee) and Installment agreements (there is a fee). You should speak with a tax professional for further guidance.
A: You should file the returns you haven’t filed. You’ll pay interest and probably a penalty (unless you’ve got a really good reason). As long as you come clean voluntarily, you should avoid any truly serious trouble. By the way, there’s no statute of limitations on non-filed returns. Therefore, if you don’t file returns, interest and penalties continue to accrue.
A: Generally speaking, the following are recommended periods of retention for various documents:
Tax Returns (uncomplicated), W-2's, 1099's, Cancelled checks supporting tax deductions, Bank deposit slips, Bank statements, Charitable contribution documentation, Credit card statements, Receipts, diaries, or logs pertaining to tax returns.
Ownership Period + 7 Years
Investment purchase and sales slips, Dividend reinvestment records, Year-end brokerage statements, Mutual fund annual statements, Investment property purchase documents, Home purchase documents, Home improvement receipts and cancelled checks, Loan paperwork.
Tax Returns (complicated), Retirement plan annual reports, IRA annual reports, IRA nondeductible contributions (Form 8606), Divorce documents, Estate planning documents.
A: There are many advantages to having your tax return prepared professionally. Since your return will be filed electronically, you may receive any potentional refund much quicker. Also, professional tax preparers are use to working with tax returns and are familiar with many IRS procedures that you may not be. Professional tax preparers may be able to help reduce your tax liability.
A: You will need to bring all the relevant tax documents that will be needed to complete your tax return. These could include, but may not be limited to:
|* W-2's||* Childcare records|
|* 1099-B's||* Medical Expense records|
|* 1099-DIV's||* Mortgage/Closing documents|
|* 1099-G's||* Home Improvement documents|
|*1099-INT's||* Proof of Charitable Contributions|
|*1099-MISC's||* Receipts for Non-Reimbursed Business Expenses|
|*1099-R's||* Self-Employment Income/Expense records|
You should also bring your previous two years tax returns so that the preparer can see how you have filed your returns in the past.
A: Fees can vary depending on the complexity of the tax return. A tax return that involves nothing more than one W-2 will be less expensive than a return that involves income from a rental property. The more work and forms that are required to complete you tax return, the more the charge will be.
Work Opportunity Tax Credit saves employers tax dollars
The Work Opportunity Tax Credit (WOTC) is available to employers who hire individuals from one of eleven targeted groups. Recent legislation extended the credit through December 31, 2013. To take the credit, the employee(s) you hire must be from one of the following targeted groups:
|Truck drivers and other employees who are subject to the Department of Transportation's "hours of service" rules are allowed to deduct 80 percent of their meals in 2016. In lieu of using actual expenses for meals and incidental expenses, you can deduct the federal rate of $63 per day.|
In most cases, an inheritance is not taxable to you, but there are exceptions
At some point, you may inherit money or property that, in most cases, is not taxable to you. Life insurance proceeds are included in the deceased person's estate, but are not taxable to the beneficiaries. Bank accounts and other income-producing assets such as stocks are not taxable to you when received, but the income these assets generate is taxable to you.Read more ...
|Contributions to your IRA must be made by the due date of your tax return. Generally this is April 15. Extending the due date of your tax return does not extend the due date of your IRA contribution.|