33 ordspråk av Cindy Hockenberry

Cindy Hockenberry

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June is a good time to sit down with your tax practitioner and review things to date. If you wait until later it is going to be harder to catch up.

More and more people are going to fall into the alternative minimum tax trap unbeknownst to them until they get the nice letter from the IRS that says it appears you are subject to AMT.

Now, instead of determining whether you provided half this person's support, the test is, did they provide over half of their own support.

People forget about tax credits and they don't take all the deductions to which they're entitled. That happens all the time.

People often wait until the last minute to get this done and realize they can't do it this year. Another reason they should plan early is so they can notify their employees so they can start deferring their money.

Sometimes it is fun to go back and look at old tax records. But for reasons other than nostalgia, it's not necessary to hold on to most of your records for more than three years.

Tax laws are constantly changing. There have been six major tax bills passed in the last two years alone. Average taxpayers are not likely to be aware of all the changes that may affect their tax return. A tax professional stays abreast of these changes, and, as a result, is in a better position to assist taxpayers with filing accurate returns and claiming all the deductions and credits to which they are entitled.

That's the sweet spot. Then you know you had your money all throughout the year and weren't giving Uncle Sam an interest-free loan.

The Earned Income Tax Credit is on a bell curve.

The first thing you should do is to not panic. Sometimes they are just looking for a very specific thing, and if you give them what they are looking for it's no big deal. Just give the IRS what it wants and do it as fast as you can. That way it'll be over fast.

The IRS typically assumes you didn't itemize for one reason or another. They almost never notify you if you miss deductions but they will tell you if you miss income.

There are always ifs, ands or buts.

They basically just got rid of the flat definition which said a foster child is any child you care for as your own and cared for the entire year. In a way, a lot more people could qualify for the Earned Income Credit than did before.

They need to make sure their payments are on track. There is nothing worse than realizing come April they have underpayment penalties.

Those payments are seized by the government.

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