It’s Tax Time Again Everyone!

Wait! 

Did somebody say taxes? 

While some people may moan and groan about the 2016 Tax Season that is just under way as of January 19th (likely the tax professionals such as myself that can mainly look forward to lots of late nights and communications with clients), most of the country cannot wait to file their taxes in anticipation of tax refunds. Per IR-2016-05 posted on The Internal Revenue Service (IRS) website last week, “The IRS expects more than 70 percent of taxpayers to again receive tax refunds this year. Last year, the IRS issued 109 million refunds, with an average refund of $2,797.” For those individuals that consider themselves savvy enough to accurately prepare their own taxes without leaving money on the table in the form of missing deductions, the IRS offers brand-name software through some of their commercial partners to about 100 million individuals and families with incomes of $62,000 or less to file their taxes for free using their Free File Program.

Although they may be anticipating tax refunds, many taxpayers still dread this time of the year, especially if they have not been diligent throughout the tax year keeping their receipts and other tax documents organized. Such filers will likely be claiming itemized deductions in the form of mortgage interest, real estate taxes, charitable deductions, casualty and losses, and the biggest time consumers of all, business and rental income. The associated tax forms for these types of items can get pretty complicated, so it is best that people seek out assistance from a trusted tax advisor that is well-versed in the tax laws and one that stays on top of the many changes that occur throughout the year. This area alone can cost you several hundred dollars in missed deductions if you are not careful. Also, when in doubt, seek a second opinion. Most information can be found on the IRS website if you know where to look. I would advise against doing generic online web searches that do not point you to specific documentation on the IRS website or a specific section of the tax code. Random information that you find on a blog or tax website will not hold up in the U.S. Tax Court if called into question, so tread lightly.

The best news of all for those looking to wait until the last possible day to pay any outstanding tax balances or that seek to turn over every rock to find additional deductions, is that you have THREE additional days before your tax return is due. That’s right! The filing deadline is April 18, 2016 because of the Emancipation Day holiday in Washington, D.C. Even better news for taxpayers in Maine and Massachusetts is that Patriot’s Day gives them an extra day to file, making their deadline April 19^th. 

Don’t you just love “the little gifts” like that?   :-)