Icon Tax Group – Year End Tax Tips

michael-lodge

by Michael Lodge

It is the beginning of October and three months to tax time, so you have a little bit of time to review your 2016 tax year and make some changes.  You should be doing the following:

  1.  Get your last pay-stub, look at the taxes you have taken out and call your accountant to see if you have taken enough.  Fill out a W-4 revised with what you need to do.  If you need to make extra payments into the tax system then do it.  Be pro-active with your tax accountant.
  2. If you have filed exempt for our payroll withholding you will be in trouble at the end of the year if you have not followed the exemption rules.  If you have taken no taxes out of your payroll you will end of owing and you may not be in compliance with the exempt rules.  There are criminal penalties for not following the regulations as it pertains to filing exempt on your W-4.
  3. If you are taking advantage of the Obamacare insurance through ACA, make sure you have reviewed your program and if you are in compliance.  If you have made too much money that is not in compliance with what you reported to ACA or the Exchange, you will end up owing at the end of the year.  If your marital status has changed that will affect your ACA allowance on your tax return.  If you just got married sit down with your Accountant or call him to see what you need to do to remain in compliance with your ACA reporting on your tax return.
  4. Self Employment Taxes – if you are a 1099-MISC self-employed contractor, make sure you have all of your documentation in place.  You are allowed deductions to go against your income, so make sure that all of your expenses are in order and documented.  Do not go to your accountants office and when he asks you how much you spent on uniforms and you have to look up in the air to grab a number, have your records in order in the event you are audited.  Be organized, your running a small business.  Make sure you track all of your 1099-MISC income, if you miss one it will trigger a letter from the IRS when missed on your income tax return.
  5. Mileage log – when your tax accountant asks you how many miles you have driven for business this year, that is not reimbursed by your employer or your are self employed, make sure you know the number by keeping a log.  You can go online and download aps for your cell phone that can help you monitor and record your travel.  It is vital, auditors love to pick on travel miles.  Document it.

Do hesitate in call your tax accountant about this time and discuss any changes that has happened to you from the last time you filed a tax return.  Be prepared and be pro-active in getting ready for tax season.  If you don’t have a tax accountant – call our office at:  877.778.1770 and speak to a tax practitioner to walk you through any issue you may have.  Visit our website at:  www.icontaxgroup.com and make an appointment for 2017.