Now that it’s spring it’s time to file for income tax Akron. Fortunately, there are a few things that you can do this year to help ensure that you get a nice return.
Don’t Leave Money on the Table
Make sure you use all of your Flexible Spending Account (FSA) dollars and make a contribution to your individual retirement and 529 accounts before December 31. It’s also a good idea to contribute up to $6,000 to your Roth IRA before July 15. Since these dates have already passed for this year, it’s time to think about maximizing next year’s refund.
Claim All Available Deductions
Deductions are important because they’re subtracted from your adjusted gross income which means they’ll lower your actual taxable income. Some of the most common deductions include education expenses, medical costs, charitable donations, and prepaid interest on a mortgage. These deductions can be in the form of cash or goods as long as you’ve kept good records and receipts and the charity has tax-exempt status with the IRS.
Use the Best Filing Status
Your relationship status of December 31 will determine your filing status which may include single, head of household, married (filing jointly), married (filing separately), and qualifying widower. To file as head of household you must be unmarried; paid more than half the costs for keeping and maintaining your home, and have a dependent who’s lived with you for at least half the year.
Report All Income
Failure to report all your income can be costly if the IRS discovers it because then it’ll result in interest and penalties on unpaid taxes. Even if it was an honest mistake they won’t overlook it. This is why it’s so important that you don’t overlook things like your 1099 income, any contract work you may have done, or any interest income or dividends you may have earned. The best way to ensure you don’t overlook these things is to maintain a spreadsheet throughout the year for your various sources of income and any deductions you may be able to make.
Wait for Your Refund
Once you’ve filed your file for income tax Akron hopefully you won’t discover that you’ve made a mistake. If you do, you’ll need to file an amended return to fix these mistakes as soon as possible. This will require you to fill out Form 1040X on paper, not digitally. Otherwise, you can sit back and wait for your refund.