This tax season, it is good to consider adopting some practices that will help you not to overpay and avoid audit risks.
Tips for your deductions
Many salaried taxpayers forget to include some important deductions on their tax return. This year, remember that you can deduct:
• Sales tax on your new or newly purchased vehicle, even if it is used
• Payment to the nursery of your children
• Property taxes
• Mortgage insurance
Good practices for business owners
If you have a business of your own, large or small, the following practices will make your tax preparation not only easier, but also more successful:
• Keep separate bank accounts for your work and personal expenses
• Never use your business bank account to pay for movies or the supermarket
• Keep track of miles traveled related to your business. Do not forget to include the date, the client you visited and the purpose of the visit
Look for a tax advisor
Perhaps the most important advice I can give you is to make sure that the tax preparer is trained in tax matters. Be sure to check their website, their references and above all, their credentials. If you are promised a “bigger refund”, BEWARE! This can lead to many headaches and the risk of being audited by the IRS. Avoid “multiservice” sites and seek advice from an accredited person.
If you expect significant changes in your income, such as a bonus or shares of the company you work for, seek advice with an expert in tax matters to make sure you make the decisions that guarantee the greatest tax savings. In general, advising and planning in advance is always a very good practice.
