Tax Tips for the End of the Year

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April 15 may seem far off, but we have some end of the year tax tips that will make your life easier this year.

  1. Don’t forget your deductions or credits

 

  • Don’t forget your expenses or what you did during the year, for example giving away unwanted clothes to charity or doing a 5k, they can add up to some nice deductions.

 

  • If you have dependents look at the Earned Income Credit Calculator on our website at https://www.advocatetaxsolutions.com/tax-calculators. If your wages and self-employment income fall below a certain level, you can earn deductions and credits based on how many dependents you have. You can also claim the Child Tax Credit-up to $1,000 if you have children under 17.

 

  • If you are energy efficient and have installed the Energy-Star approved solar-power systems before the end of 2016, you can claim 30% of the cost as a tax credit for that year.

 

  • If you have been unemployed in 2014 and had job searching costs, you may be able to deduct them.

 

  1. If you didn’t have health insurance this year  This is the first year most Americans are required to have health coverage. If you were uninsured for 3+ months, you may not qualify for an exemption and may get hit with a tax penalty for 2014.

 

  1. Check your withholdings Individuals should periodically check their withholdings to ensure they are in line with their true tax liability. Certain life changes like marriage and having a child will change your tax liability. That would be a good reason to adjust your tax withholdings.

 

  1. Don’t NOT file your taxes Always file your taxes by the original or extended due date, even if you cannot pay. Late-filing penalties are worse that late-payment penalties.

 

  1. Sometimes you need to consult a tax expert The tax code is an infinitely complex and can be extremely confusing and anxiety provoking. So it’s understandable to want to get professional tax help. Every year the tax law changes and its thresholds are adjusted. If you don’t know the law and how it applies to you, consulting with someone who’s up on the tax code is a good idea.

If you need help let the tax professionals at Advocate Tax Solutions know! All estimates are free, confidential, and guaranteed. Our tax professionals have years of experience negotiating with the IRS and representing thousands of clients.

 

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