With the 2017 tax season come and gone, now is the time to start taking advantage of all of the tips and tricks that can be of benefit for next year’s tax season. All of the following are what many experts of Income Tax preparation in Manhattan suggest are the best things to do.
Maximize Contributions To Retirement
If someone is not covered by a retirement plan at their job, they can lower their overall tax bill by contributing up to $5500 if they are 49 or younger and up to $6500 if they are 50 or older. If the person’s employer has a retirement plan that covers them, they deduct a certain portion of their own IRA contributions but they must adhere to the income guidelines. Experts recommend trying as hard as possible to invest the absolute maximum into a tax-deferred retirement plan. This is especially important if it is matched by an employer. This makes it essentially a 100% return on investment right off the bat.
Identity Protection
Make sure to keep the IP Pin if one was sent. The IRS has begun to mail out six-digit special pin numbers in an attempt to curtail tax refund fraud. If someone were to attempt to fraudulently use someone else’s social security number, they would still need to know the IP Pin number before the tax return would be accepted. This greatly reduces the chance of somebody illegally getting the tax refund money sent to them instead of its rightful owner.
Get What’s Coming
The earned income credit is a great benefit to those who earned less than $53,930. The IRS provides an earned income credit calculator on their website or any professional in Income Tax preparation in Manhattan can provide the proper amount when they file that person’s taxes. To receive this credit, a tax return must be filed, it is not an automatic amount sent to those who made less than the specified amount or those who were completely unemployed.
For more suggestions on what can be done to maximize the amount one receives in tax refunds or to see how to lessen the amount of taxes paid, check with a reputable firm such as us. They can provide professional advice which will put the money where it belongs.
