Tweet

Stop Read this before you tackle your tax return

Written by: Bob O'Brien

Article Overview: VETERAN FINANCIAL PLANNER GIVES YOU TIPS ON PREPARING YOUR TAXES AND GOING OVER MORE COMMON MISSED TAX DEDUCTIONS.

Stop Read this before you tackle your tax return

I was at the computer store Saturday and couldn’t help but notice how many people there were purchasing tax preparation software programs. It is usually good to wait until about now (Mid-February) to do you return because you should have gotten all your W-2’s, 1099’s etc… and therefore not have to worry about receiving one after you have already completed the return.


Unless you are involved in some type of business partnership in which you probably file an extension every year, you should have everything you need to complete the return now.

I want to give you some tips in order to make the tax preparing experience a more educational one for you. Even if you use a CPA or tax preparer, make certain you read on because some of these tips will apply to you as well.

Prepare to Prepare. Review last year’s return and all your W-2’s, 1099’s etc. Most people’s taxes are not different from year to year. So looking at last year’s return will refresh your “tax memory”.

Set time aside where you know you will not be disturbed and expect to have to sit down twice to complete your return. Take advantage of this fact with notes and questions. Be prepared to lock yourself in a room with no phone, TV, kids etc. and be completely focused on taxes.

Take your time and make it a learning experience. In my last blog, I pointed out some things on the Schedule A that pertain to the current economic troubles. See if you can find tax planning opportunities that may save you big money down the road. Even if you can increase your “tax smarts” in any way, there is sure to be benefits in the future from it.

Take good notes. Unless your return is real basic like one W-2 and a 1099, you will probably need to do the return in two sittings. I would strongly encourage you to take good notes if you are not doing this already. List questions that apply to your return and things that you want to better understand. This will be of tremendous value when you come back to the return to finish it (and also for future planning).

Let the computer program do the “heavy lifting”. You don’t need to know all the “ins and outs” of every tax rule. If you have trouble with something or with the program, take a step back and try to see the bigger picture and the rules that the program is probably trying to teach you!

Do “common sense” check ups. Don’t rely on the computer too much. Matching it up to last year’s return will always help with that. The best CPA’s out there at one time learned from another CPA’s work from previous year. So make sure you completely “milk” last year’s return for all it is worth. Make certain there is not a deduction you took last year and are not taking this year, unless of course you did not have that expense this year.

Don’t worry, be happy. As long as you act in good faith, then any mistake that you make will only result in you paying what you would have owed anyway plus some interest. So, don’t worry. It is really three years after the return is complete until you can call it “finalized” anyway. You can be questioned for up to three years by the IRS.

What’s most important is that you make it learning experience because it is not easy to learn about your taxes and yet it’s so important. It is for most, the largest expense in your life.

You can read books on taxes, but it is only real experience in which you can make real distinctions and learn to plan for taxes. Planning for your taxes and having strategies and being able to weight decisions against market conditions will make a huge difference. This will save you thousands at times.

When you use a tax preparer or CPA, make certain you are asking questions and reviewing your return for planning and opportunities. It is the planning and pro-active moves that make the difference and your CPA/preparer should help you with those services.


Sincerely,

Bob O’Brien
Sr. Instructor

Related Articles
  Who Protects Your Greatest Vulnerability?
  Is Your Life Working?
  How can POS Software Ally in Preventing the Problems of Sales Return Fraud
  Too Busy Being Busy
  Publishing Your eZine – the Cons

Article Tags: blog, business partnership, computer store, cpa, economic troubles, learning experience, memory set, money down, set time, sittings, smarts, software programs, tax planning, tax preparation software, tax preparer, tv kids
Referred by: http://www.mywealth.com



Related Forum Posts
Re: On taking Action - [quote="jvprosperity":1hd0zjku]I was surprised to not see the words along the lines of taking deliberate action within the article. Do yo think it's an important part of the 6 points Evan summarized from the article or is it implied?[/quote:1hd0zjku] Hi Andy, I think taking deliberate action is implied in the six points. For instance, I interpret them as follows: 1. Set your sights on where you’re going - Write your goals down on paper. 2. Educate yourself - Read everyday about your field and even take courses on it. 3. Passion pays off - Enjoy what you're doing. 4. Grow your money - Invest your money. 5. No guts, no glory - Go out and sell your product/service/self everyday as if it were last. 6. The Biggest Secret? Stop spending. - Put aside as much money as you can into savings your account/retirement fund.
Decide your market first - Stop for a second and decide exactly who it is that you want to sell your product to. Once you've done this you'll have a far better idea of where to find them and what it is that they're interested in Cheers
Daily Routine - Hi Jen - being a mostly online business I also end up spending most of my day in front of the computer. I find that a quick walk mid-day helps and the fresh air gives me the energy back to tackle the rest of the day. What personal time do you take during the day?
Other Great Books... - Feel The Fear And Do It AnyWay - Susan Jeffers How To Stop Worrying And Do It Anyway - Dale Carnegie ('What's the worst that could happen - the worst?' Then prepare yourself for that and reality is such a relief!).
Opportunity Addict - No and no. He started collecting them because he thought 'in a few years' I might want to open up that kind of business. We are currently reviewing his long term business plan and realizing that this 'hobby' stuff isnt really in-line with his bigger goals. Now he is going through and getting rid of stuff....because its one of a few sections of his house that he had cornered off to tackle, 'sometime later in this life'. J


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Selling What Sizzles vs. Delivering Real Value

An Intelligent Contact Sheet

You Have A Website What Now

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.