January is a traditional starting point for a bold new year and for many income tax payers, the perfect time to start preparing their documents for 2017 Income Tax filings.
Having a list of Income Tax Tips may help you avoid some of the pitfalls that can occur by even the most well-intentioned tax preparer as well as ease the process. Consider these tax tips when preparing your 2017 Income Taxes.
- Make sure to report all income. Not reporting income is against the law and you could face penalties and fines for unreported income if you are caught by the IRS.
- Remember to disclose any foreign accounts such as bank accounts, mutual funds, trust accounts and more. For a more thorough explanation, please refer to the Disclosure of Foreign Accounts page on our website.
- Refresh yourself on the new Tax Law. Trump recently signed a new Tax Law that has many changes to the previous tax law. Refer to our blog, The Effects of Trump’s Tax Plan on You and Your Business, for more information.
- Be clear about what is required as a Business Owner when filing taxes. Our blog, Tax Tips for Business Owners: How to Set Up or Run Your Business, may be able to provide you with more information.
- Properly deduct charitable donations. Itemize deductions and make sure you have receipts to back up your donations.
- Correctly calculate business and auto expenses. Keeping an accurate mileage tracker is a smart idea as well as keeping receipts for all expenses you wish to write-off. Consider reading The Effects of Trump’s Tax Plan on You and Your Business for other helpful tips.
- Know what expenses you cannot deduct. The IRS provides information on their page, Deducting Business Expenses.
- Avoid making simple mistakes that could be costly. Consider triple checking your work or using the services of a Tax Attorney. Mendes Weed, LLP may be able to help.
- Know the deadline to submit taxes. The IRS will begin accepting electronic and paper tax returns on January 29, 2018. The deadline to file is Tuesday, April 17, 2018 since April 15 is a Sunday and Monday April 16 is Emancipation Day, a legal holiday in the District of Columbia.
- Do not fall for Tax Scammers pretending to be IRS employees. The IRS will not call you for payment without mailing you a bill first or ask for personal information or credit card numbers over the phone. If you receive a call asking for payment or credit card information, hang up the phone.
Mendes Weed, LLP
If you or someone you know can benefit from an experienced tax attorney, contact Mendes Weed, LLP. We have offices in Sacramento, Walnut Creek, and San Francisco but help clients throughout the United States.
Disclaimer: The tips and materials provided on this page are for informational purposes only, offered as public service. No information on this website should be considered legal advice or used as a substitute for legal advice. For legal advice, you should contact an attorney directly.