At Maicher CPA Pllc, our tax preparation professionals are committed to minimizing your taxable income and preparing tax returns which reduce the risk of audits. There are several proactive things you can do as a client to promote these objectives:
- Review Your W-2s and 1099s. W-2/1099s reports are usually received by employees/contractors by the end of January. Review these reports because sometimes they overstate/understate income or otherwise misreport withholdings. In the event of an error, promptly contact your employer to correct the error.
- Retain Proof of Common Deductible Expenses. Common deductions with applicable 2019 dollar limits include: (a) home mortgage interest (i.e. the interest on a loan used to buy, build or improve your home) applies to loans of up to $750,000 for married taxpayers filing jointly and $375,000 for married taxpayers filing separately, (b) IRA contributions up to $6,000 ($7,000 for age 50 or older), and (c) state/local taxes up to a combined total of $10,000 ($5,000 for married taxpayers filing separately). To make sure these deductions aren’t missed, keep documents showing the contribution such as canceled checks and/or account statements.
- Dependent Children. In 2019, the child tax credit is $2,000 per qualifying child and is refundable up to $1,400. Be sure to provide us with the social security number of all dependent children.
- Charitable Donations. You may deduct certain qualifying charitable donations. Be sure to provide us with the related receipts, canceled checks, and similar documentation.
- Business Expenses. If you purchased an item needed for your job and your employer does not reimburse you for that expense, the item may be deductible. Further, if you are self-employed, many items used to conduct your business may also be deductibles such as computers, office furniture, marketing/advertising expenses, and mileage (58 cents/mi.). Keep receipts and related documents concerning the above purchases.
Maicher CPA Pllc prepares tax returns focused on minimizing your tax liabilities. As the July 15 tax due date rapidly approaches, call us to prepare your return, or perhaps to file your extension request.