It’s that time of year again. Tax Season. The holidays are over and the new year is here. By Tuesday, January 31, your employer (and any past employers) will have your W-2 out in the mail. Shortly after, you can file your taxes and learn how much your tax refund will be. You have by Tuesday, April 18, 2017 to file. Here are some tips to think about and best practices when filing your 2017 tax return.
Income Files Needed
When filing your taxes, you will need specific documents that disclose where your sources of income came from. One of the top forms needed to file taxes is the W-2. This is the form employers must provide their employees that shows all wages earned and what taxes were withheld. Independent contractors will receive a W-9, which will also share all wages earned. The contractor is responsible for covering the taxes as the person or company they were contracted with do not withhold taxes. For individuals who are self-employed, you will need to turn in a 1099-MISC. In addition, gather up all receipts and other bills and documents of money spent for the business purposes. From here, you may have had sources of income from other sources, such as retirement, 401K, investments, health savings accounts (HSA), prizes or lotteries won sometime within the year or alimony post-divorce. There are tax forms that need to be filed for these methods of income. Have questions? Talk to your local tax specialist to see exactly you might need.
Maximizing Your Refund
There are a variety of ways to get the most out of your tax refund. Did you buy a new house? Did you move over 50 miles away for a new job? Did you make monetary and/or in-kind donations to charity? You can deduct these type of items from your taxes so it’s important to keep track. What about tools or office space for work—did you purchase your own? That can be deducted too. What about supporting a friend or family member? In the International Business Times’ Get a Bigger Tax Refund By Claiming These Credits and Deductions,
says if someone stays with you for at least a year and makes less than $4000 in that year can be claimed on taxes.
If You Owe
There could be a variety of reasons you might owe on your taxes. If you work for a company and receive a W-2, you may not have had enough money withheld to cover your taxes. For others, such as independent contractors, you will owe the taxes you made throughout the year. In other instances, errors filling out forms may lead you to owe. The deadline to pay the taxes back is April 18, so the sooner you file, the better to give you time to create a plan. If you are unable to make your tax payment by the deadline, there are options available. You can apply for an online payment agreement
, whether you are an individual or business owner. It is important to create a plan and pay the money back as soon as you can to avoid penalties.
When it comes to all your 2017 tax needs, Bloch, Rothman & Associates is your go-to tax preparation team in Denver. Be sure to factor in these energy efficient tax credits on your Denver tax return
and let us help! Fill out our contact form or call us at 303-321-7160 to set up your free consultation for quality service and be on your way to a worry-free tax season.