Tax Prep Attitude
What’s your attitude when preparing your income taxes?
The investment of a few hours can help reduce your tax expense and possibly create a refund. So work with a good attitude! It’s important to claim all the tax deductions and tax credits that you can. Simply read the IRS rules and see if you qualify. Lisa Greene-Lewis, a CPA with TurboTax says: “There are a lot of credits and deductions that Americans are missing out on.” Let me explain the difference between the two. Deductions reduce the amount of your income that’s subject to federal income tax. These include categories related to work, education, health care, investments, and things you itemize. Now tax credits directly reduce the amount of tax you owe. Credits are available in a variety of categories. The most common include:
• Child Tax Credit
• Credit for other dependents
• Child and Dependent Care Credit
Now there are a lot more. So check them out at irs.gov/credits and deductions for individuals, but don’t procrastinate. That can be costly – very costly. There’s a late-payment penalty and a failure-to-file penalty. If you owe money and wait too long, the IRS can garnish your wages, seize your bank account assets and even put a lien on your property. You’ll be notified first, but ignoring your responsibility can be financially devastating. So gather your paperwork, do your research, and check your attitude. In all things, even preparing your taxes remember: “Whatever you do, do your work heartily, as for the Lord rather than for men.”
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