Life at Gray Gables: 8 Things your Tax Preparer WANTS you to know...

It's tax season and hopefully everyone is getting there paperwork in order and setting up your tax duties of filing.

We work with a CPA, and this year I was enlightened to learn some new things from my Tax Professional, and get this...it is stuff THEY WANT US TO KNOW!!

Here are
8 things
WE need to know:

1) Your Money is Due APRIL 15- EVEN IF YOU FILE AN EXTENSION!!!

The IRS allows extensions of up to six months, but they're meant for people who don't have all the information they need to file, not for those who don't have the money. There are penalties and interest that will be collected for missing the payment deadline, even with an extension, that people do not even know. To cover these extra costs, estimate your bill and make a payment. If you pay to much, you will get the difference back. Play it safe and get the money in the mail!

2) You're Probably Leaving out SOME Deductions.
It's not only the big ticket items that deserve your attention- smaller ones can add up too! Have you donated to a charity? Do you have travel related to volunteering? How about job-search expenses? Maintain a record of everything- from printing your resumes at the copy shop to air travel for a job interview. If your total miscellaneous expenses are more than 2% of your gross income, your search may be deductible- and this means even if you didn't get the job! Other deductions to consider: Membership fees for a weight-loss program if a doctor advised you to go; legal fees paid to secure alimony; moving expenses to relocate for a new job; classroom supplies (up to $250) if you are a teacher.

3) Small Business Deductions just got EASIER?

Until tax year 2013, you could not deduct your home-office space without cutting your expenses like your mortgage interest, property taxes, utilities and depreciation into account. Now the IRS allows you to take simplified deductions of $5 per square foot for dedicated work-space for up to 300 square feet. Let's say you netted more than $400 last year in babysitting, bookkeeping gigs or keeping an Etsy shop- you'll have to pay self-employment taxes on your earnings.

4) There are some Great new Tax Apps.

Download Shoeboxed onto your Smartphone - snap a photo of your receipts (or you can mail them in) and the app captures and organizes your records electronically. Come April, you can easily export sorted receipts to popular tax programs. Once you filed, the IRS2GO app lets you check the status of your refund.

5) You may be able to Amend your Return.

This is the second year that same-sex married couples anywhere in the U.S. can reap the federal tax benefits of marriage. Also, these couples can amend previous federal returns for 2011, 2012 and 2013. This will most likely benefit couples with big income disparities- if one spouse is a stay-at-home parent or was unemployed during the recession. Note: Amending does NOT make you more likely to be audited and could score you a belated refund!

6) Double Check for Typos is KEY.

One of the most common mistakes is using the wrong Social Security number for dependents. If you have kids, make sure those SSN's are correct, double check them because these are valuable deductions! An error could delay or jeopardize the Child Tax Credit ($1,000 per child), the Child Dependent Care Credit (to to $2,100) and the Earned Income Tax Credit (up to $6,143 with three or more qualifying children). Take a minute to confirm these numbers BEFORE you file!

7) An IRS Installment Plan is smarter than Charging what you OWE.
For a onetime enrollment fee of $120 (or $52 if you set up for direct deposit), you can break your tax bill into payments spread out over 72 months, with a relatively modest interest rate of 3% annually. Though paying with a credit card might be easier- and can earn you miles or points- the interest rates on most are much higher than that of the IRS.

8) The Odds of BEING AUDITED are SLIM.

The truth is, 1 in 104 people are audited, based on 2013 statistics. If you don't own a farm, rental real estate, or a small business, than your odds are 1 in 250. If you do have the bad luck of being audited, keep in mind that only 3 in 10 audits require a face-to-face meeting. Most audits are resolved by mail.