VERY Simple Tax Tips for 2013
In the midst of tax season, here are just a few very simple pointers for filing your 2013 returns:
1. Be honest. Taxes are signed and filed under penalties of perjury.
2. Make sure your preparer is qualified and a good fit for you.
3. Most of the numbers cannot be changed at this point, but you may still be able to contribute to an IRA for an additional deduction (subject to income limitations).
4. For businesses, keep track of actual vehicle expenses versus standard mileage. You can allocate business v. personal on a vehicle that is used for both.
5. If you have a business, make sure you only deduct expenses that are related to that business. And remember, if you are filing on a Form 1120 or 1065, those are due March 15th, not April 15th.
6. There is a new option for calculating a home office expense in 2013: If you have a home office, you can calculate your deduction by multiplying the square footage of your home office by $5.00.
7. If you owe a lot on your return, consider making adjustments to your wage withholdings or start making estimated payments for next year. This can also help you avoid penalties for underpayment.
8. Start early.
This post is for general purposes only, and is not intended to be legal advice.