WHY HIRE A TAX PRO? - THE $20,000 MISTAKE
One day a very kind woman came in and asked me to prepare her tax return. As I worked, I learned about her and her daughter, enjoying the conversation. At the end, the woman was surprised at how different her result was from the year before, when she prepared her own return on Turbo Tax and owed $20K in taxes to the IRS and NYS. I asked her to show me the self-prepared return from the year before. As it turned out, not a single dollar of the taxes she paid that year was legally owed. Due to a few innocent errors, this kind woman had accidentally cost herself $20K! It was not too late to undo the damage, so I prepared amended returns for her to mail in. 6 weeks later, she had her $20K back and I had a friend for life. It’s tempting to do your own taxes in order to save $50 or $75. But it can cost you much more in excess taxes you pay but don’t legally owe. Do yourself a favor this year and HIRE A PRO!
File Taxes On A Postcard? Yes, but...
Can we really file our taxes on a postcard? YES WE CAN! But with a few hitches... The new 1040 form removes more than half of the 78 lines contained in previous years. But smaller is not necessarily simpler. In exchange for the main form becoming postcard-sized, additional attachments were created for many of the most popular deductions like Student Loan Interest, Educator Expenses, IRA and HSA Contributions. Same for certain types of income, like Self-Employed Business Income and Capital Gains from Investments. Have children? You'll now have to hunt for the Child and Child Care Tax Credits. Have college-aged children? Same deal trying to locate those credits - American Opportunity and Lifetime Learning. Bottom line - Filing taxes didn't get simpler just because the main form shrunk. Filing taxes actually got more complicated for those who don't know the ins and outs of all the many forms and how they each tie back to the "up-front postcard". Call a pro and let them sort it out, so you can smile when you finally mail your postcard to the IRS.
MOTLEY FOOL 2018 GUIDE TO TAX CHANGES
Please follow this link for a complete look at the most important changes to tax law that impact American taxpayers this filing season.
https://www.fool.com/taxes/2017/12/29/your-complete-guide-to-the-2018-tax-changes.aspx
2018 TAX CHANGES FOR SENIORS
Please follow this link for a summary of important changes to taxes and tax deductions for Americans over age 65. The Medical Expense Deduction in particular should have a greater impact on those over age 65 than those under.
http://blog.ovidlife.com/tax-changes-for-seniors-2018-trump-edition/
WHAT THE SHUTDOWN MEANS FOR THE IRS
Please follow this link for informed commentary on how the government shutdown impacts the operations of the IRS per the Lapsed Appropriations Contingency Plan.
https://www.forbes.com/sites/kellyphillipserb/2019/01/15/yes-to-refunds-no-to-audits-irs-advises-taxpayers-what-to-expect-during-the-shutdown/#231cdad57710