Deductions • Itemized (Tax) Deduction – items that reduce your taxes…children, mileage for driving to work, student loan interest, cost of home office, etc. • Standard Deduction – deduction set by the government based on filing status – The government automatically gives you a specific dollar amount that you can deduct to help lower your taxes, varies with status and year
(or by the first business day after that date if it falls on a weekend or federal holiday)
Filing Extensions The following steps should be taken if you are unable to file your taxes by April 15: • An extension of time beyond the April 15 deadline during which taxpayers, with the approval of the IRS, can file their returns without incurring penalties • Must estimate the taxes due and remit that amount with the application • Does NOT give tax payers more time to pay their taxes
Tax Fundamentals • Death of a Tax Payer – spouse or executor of the estate will have to pay the taxes • If Someone Cannot Pay – you are able to arrange to make “installment” payments, OR you may be forced to sell your assets
Preparing Your Tax Return • Do it yourself • Get help from the IRS • Use professional services – Tax services – Certified public accountants (CPAs) – Enrolled agents (EAs) – Tax attorneys • Use tax software • Computer-based tax returns • Taxpayer is responsible for accuracy!