Tax season can be overwhelming even under the best circumstances, so hitting roadblocks along the way can be doubly frustrating. Here are a few common tax issues you might encounter this year and how to handle them before they get out of control:
Contact your employer about mistakes on your W-2. Be attentive! When you receive your W-2 form from your employer, check it for any errors or inconsistencies. If there’s an issue, contact your employer immediately. If it can’t be resolved by your tax deadline, let the IRS know ahead of time. Doing this could help you avoid paying taxes you shouldn’t be paying.
Keep track of your expenses. If you intend to report business expenses for deduction purposes, make sure to keep records of what those expenses were. If you can’t provide substantiating evidence for the deductions you claim, the IRS could reject your deductions outright and even apply a fine. Avoid this by hanging onto things like receipts for travel costs throughout the year.
Have some evidence of your health insurance. If you had health insurance this year, you’ll have to prove it in some way to avoid a tax penalty. This could include a bill from your health insurance company or a pay stub that indicates a deduction for your coverage. Whatever it is, keep it around so you don’t get hit with an unnecessary fine for not having insurance.
And as always, you can call Taxation Solutions, Inc. at (859) 795-4422 if you need any assistance with your taxes. With over 40 years of tax services experience, we’re happy to help you avoid tax problems, or help you fix them once they’ve developed!