This post comes to you courtesy of a friend to Common Cents, Lynda E Evans. She wanted to know what are my top 10 things people don’t know about taxes. I actually had a hard time coming up with ten so here are five…
1. Most people don’t need to spend money on tax preparation (my tax prep buddies are going to cyber-kill me). Depending on your income and if you have a relatively simple tax return, you can check out the VITA program (Volunteer Income Tax Assistance).
2. If you ever get audited… do NOT go it alone. Hire a professional (CPA, enrolled agent or attorney) that specializes in federal income tax. Take my word for it, it will save you a lot of heartache and headaches.
3. Want to see tax preparers run away in terror and scream like they do in slasher movies? Show up to their office with shoebox or envelope full of unorganized receipts. They won’t tell you… but I will, I HATE THAT!
4. Don’t forget charity. Many forget about non-cash charitable contributions.
5. I know I just said I hate the shoeboxes and envelopes filled to the brim with receipts but when in doubt, file it and ask me about it later. Better to have the documentation/receipts etc and it not be deductible than to remember a deduction that I can’t file for you because you didn’t bring me a receipt.
Here are a few more… 13 Things Your Tax Accountant Won’t Tell You.
If you’re a tax preparer and you don’t hate me for blabbing… if you have one or two to add to the list, I’m curious. Add them in the comments!