We know that preparing your taxes can seem stressful, but our Sacramento area team provides the trusted tax help you need–no matter where you live–so that you can get through tax season without any undue stress. We know the common tax filing pitfalls and red flags that taxpayers often set off, and we know exactly how to prepare your taxes to minimize your tax liability.
So, what are some common issues or errors taxpayers make that send up a red flag for the IRS, and how can you avoid them?
Track Your Charitable Donations
Donating to charity can be a great choice for many individuals, especially when a cause or organization is one that you believe in. Many donations are tax deductible, but knowing how to deduct these donations and how much you’re able to deduct is crucial if you plan to claim them on your taxes.
There’s a limit to how much you can claim on your taxes in the form of charitable donations, and you need to be sure you don’t exceed it. You can donate as much money to charity as you want, of course, but you can only claim up to a certain amount on your taxes. Additionally, these deductions need to be itemized, so be sure to keep your receipts.
Report All Income
Perhaps the most common thing that leads to the IRS investigating your tax return is a failure to report income. Whether it’s salaried income, independent contractor paychecks, taxable interest, or capital gains, you need to mention it on your tax return. Your bank or employer reports your income to the IRS, and if your numbers don’t line up with the information the IRS already has, you can almost certainly expect an audit.
Portray Rentals Accurately
There are tax incentives for individuals who rent out a home or a part of a home, and many associated expenses may be deductible. Writing off more than you’re entitled to, though, is a big red flag. It can be difficult to ensure you minimize your liability as much as you’re entitled to without overextending your claims, but the experts at our Sacramento area tax relief firm can help you claim your exemptions and deductibles accurately. If you’re struggling with how to proceed, be sure to make the call to our team today.
Whatever your tax situation is, we’re the trusted tax experts you need to ensure a smooth tax season. For more information, or to schedule a consultation, be sure to contact us by calling (916) 533-9940 today.