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New York Certified Public Accountant Lists Top Tax Filing Mistakes
If you are anxious to get your taxes filed this year, you may wonder how you know who to choose to do your taxes for you. There are several solutions but a New York Certified Public Accountant is the number one choice for several reasons. Before you begin searching for someone to do your taxes, you may want to familiarize yourself with the top tax filing mistakes that are made everyday so you can avoid them. Here are some basic filing mistakes.
Tip #1: Errors in math is usually the most common mistake made on a tax return. Although today most tax preparer NY uses computerized software to file their taxes, if the tax preparer does not enter the right number then it cannot compute it correctly. Most IRS software systems do catch errors in math when they go over all the forms but if a mistake is not caught it can affect your balance due or balance owed. Make sure that your preparer has a way of double checking all the work before it is submitted to the IRS.
Tip #2: Reporting interest and dividends is another mistake made on tax preparations. It’s important that you report any earned interest or dividend income that you have earned throughout the year. The IRS reports these notices every year and you may not be getting back the right results. Make sure when you receive the notice from IRS that it is correct.
Tip #3: If you invest or sell something that you are invested in, you need to report it. This includes when you sell a portion or all of your investment. You need to account for any profit plus any additional income that you have reinvested. If you buy or sell stocks, you need to make sure that you present this to your New York Certified Public Accountant so they can help you determine how it would be best to file it. If you don’t report stock sales to the IRS, when the one that paid you reports their income to the IRS then the IRS will be able to compare it to your tax papers. If you did not report it then they will notify you. If you receive a letter, take it to your Certified Public Accountant so they can help you solve this problem and get the IRS paid.
Tip #4: Change in marital status is another common mistake on tax forms. Whatever your marital status is on December 31 is what you use to file your taxes for that year. If you decide to file married filing separately, you will not be able to claim all of those tax breaks you get when filing as a couple.
Tax tip #5: To avoid any confusion, you need to keep all receipts on everything you want to file a deduction for. In another words, if the IRS wants proof of a deduction you need to have it in order for them to accept the deduction. Otherwise, it is just your word and most of the times the IRS will not go on just your word.
To make sure that your tax filing New York is done as per rules, it is best to consult or hire a New York Certified Public Accountant for a hassle free year ahead.
About us: MEDOWS CPA, PLLC is a boutique New York CPA NY Firm serving the needs of Individuals & Small Businesses in New York City and throughout the nation. We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.
Jonathan Medows, CPA
MEDOWS CPA, PLLC
A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses