Let’s get straight on to the things your IRS agent will never mention to you on tax planning.
- You Aren’t Eligible for Free Tax Software – Many people don’t know that they are eligible for using the online IRS forms. Truth is you are even if you’re salary is below the recommended earning.
- Rewards Can be Taxable – If you’ve got something such as a reward, chances are the reward can be regarded as income leading to getting taxes later on. This is something your IRS agent will never mention to you. Therefore, it is best to keep a record of such rewards.
- If you can’t Pay, File it – If you are facing penalties in regards to failure-to-file and failure-to-pay, then you should know that the first one is worse. Having no money is still fine to the IRS however, it is important to fill the forms and offer proper documents. You can still negotiate later with the IRS in regards to the payment.
- Your Credit Score Hurts if Filing is Done Later – If you file later, your credit score might not get affected. However, the drawback to this is that your penalties keeps getting more that needs to be paid to the government.
- A receipt is Required for Charity Donations – It is absolutely important to get a written receipt or statement from the charity which is being paid by you. Make sure the receipt includes information of goods and services description in exchange for the gift you receive from the charity. This helps in applying for tax deductions later on.
Make sure you hire the best accountants in Coombabah region.