Q & A and Tips on Accounting, Taxes and Personal Finance.

Understanding Your Taxes

March 23, 2019 | By More

taxesAlthough mentioned in the last article, it needs to be mentioned again. Be sure you do not email sensitive financial information unsecured. You can password protect the file or send it via a secure portal. Today’s technology is great but allows easy theft of personal information.

Many tax returns have already been completed and the general consensus seems to be that many are paying more in taxes this year compared to prior years. With the exception of one tax return, all Form 1040s that I have completed resulted in a lower effective and marginal tax rate in 2018. In speaking with different taxpayers, I have found that people think of their tax liability as the amount of their refund or amount due rather than the actual liability, regardless of their payments. Payroll withholding tables used by payroll processors were updated early 2018 to reflect the lower tax brackets. This change resulted in a higher net paycheck for many.

An informed taxpayer is the best client. Why not take a few minutes after your tax return is complete and review the tax return with your tax preparer. A better understanding of your tax return allows your CPA, to provide a better service to you, the taxpayer.

I ask all my individual clients to complete an organizer each year. Although it may seem tedious, especially for returning clients, the questions posed should be considered a brief summary of possible beneficial tax transactions that may have occurred during the year. Or there may be transactions that you did not realize needed to be reported. My goal, as the tax preparer, is to apply the greatest tax benefits possible to each of my clients.

If you have not completed your tax return yet, do not forget the individual tax return is due by April 15th.

If you are not able to complete the tax return by the due date, an extension can be filed, however, remember the extension only extends the due date to file the tax return, it does not extend the date to pay.

Contributed by Michele Sheerahamed – CPA
Michele Koscielniak CPA, LLC is located in Lake Worth, Florida. For more information or to contact Michele Sheerahamed, visit https://www.michelekcpa.com

Article information should not be used exclusively to make legal, financial or tax decisions. Because laws and rules can change frequently, topics may not always be updated to reflect these changes or may not apply to your unique situation. It’s prudent to seek out the advice of a professional for your specific needs.

Category: Taxes

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