Thursday, February 27, 2003
More Bang for Your Buck: Tax Tips
If you thought the "W" in a W-2 form stood for worry - you're not alone. With tax time just a month and a half away, it's time to finally start preparing the paperwork. We've got a list of essential tax tips.
Mark says, "Itseem to be putting it off more because its not fun to do.. It's drudgery you have to get through it."
But there are easy ways to save and preperation is paramount.
CPA, Stuart Appelrouth says, "If you want to save time and money you should prepare a document that lists all your all your expenses along with the amounts that was incured the enitre year."
And those expenses come in various shapes and forms.
Like children and charity are both instant deductions.
"Any dollars that are given to charitable cause that are approved by the IRS, you get to deduct as part of your itemized deduction."
But the same can be said for business expenses that aren't covered by your company... and medical expenses that aren't covered by your health plan.
And speaking of health plans, the stress of doing your taxes can be detrimental to your health.
That's why there's a new system in place this year.
Depending on your income, you can file your taxes online at www.irs.gov.
"And if you don't feel comfortable filing online. You can still prepare the tax return online, print out a copy and mail it to the IRS."
If, however, you need an extension. You're not alone.
"I've had an extension the last three or 4 years - I dont know what it is."
Just remember you're procrastinating on the paperwork. You still have to send the check on time.
"Otherwise there's interest and some penalties you'll have to pay."
But don't panic. The IRS isn't looking to get you.
"Well believe it or not almost no one gets audited, theres less than 2% of the tax returns that get audited each year."
And here's another idea for those who can afford it.
If you recieved a bonus at work, ask your boss to defer it to next year. That way you won't have to pay taxes on it until 2004.
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