Useful Links For Getting Started

You are ultimately responsible for the accuracy of every item reported on your return, even if someone signs your return!

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Summary

1)Read IRC
2)Find Amendments
3)Read Publications 
4)Review Instructions before filing 

 

Common Myths

Ignore tax advice from News, youtube, friends, your buddy's accountant, random sites on google (including famous ones)

1)Do Tax Planning
2) Keep all records
3)Take responsibility
4)Only trust government websites

Burden of Proof

Deduct what you can proof if you are called out on it, and actively document in writing and gather evidence

1)Learn required documentation for each transaction
2) Use bookkeeping software to save time
3)Keep back-up of your documents

 

IRS Tools

Make sure you are taking advantage of all resources avaiable to you, you have paid for them with your taxes

1)Get a transcript to see where you stand
2) Check on the status of your refund
3)Prevent penalties and interest by using estimated tax calculator and pay taxes due using IRS’ App

Finding an accountant CPA, E.A and Tax Lawyer

Best accountants give you resources and teach you instead of short responses

1)Gather your specific needs (Tax prep, UCC, audit defense,  etc)
2) Find one or more accountants to help you learn what you need
3)Test and verify your accountant!

What counts as income

Hiding income is the most stressful and punishable way to not pay taxes

1)Make sure IRS gets the exact same information from you and third parties
2) Take advantage of Above the line deductions
3)Focus on economic benefit not tax benefit

Deductions or Credits? Flow of Income

One dollar of credit is not equal one dollar of deduction

Do your tax planning with first, income adjustments in mind, then credits and at last, deductions. 

How to file your taxes for FREE

Things to keep in mind

Don’t use your everyday password on IRS’ website

Don’t shop around only based on price for your tax software

Write down your AGI and PIN 

Bonus Information: Higher Education

Room and board is usually differnciated from cost of education

These costs are related to a “qualified” institution, for example, this course does not count 

You can count each dollar spent either for deduction or credit, not both

Useful Audit Information

Memorize your AGI and PIN

Don’t use your everyday password on IRS’ website

Don’t shop around only based on price for your tax software

Don’t wait until the last week to file your return