Filing Taxes 2019, Pt. 2

In the previous segment we brushed up on common mistakes to avoid while filing taxes. With the IRS back up and running at full force it’s time for taxpayers to gather their receipts and W-2s so they can prepare to file. Previously, we mentioned the new tax credit and filing under the wrong status, but there are many more mistakes to avoid that may allow you to maximize your refund.

First, and this is important, do not file without important documents. Be sure to have all your W-2s from every employer, 1099s from other sources of income, and documents that support credits or deductions (paid preparers look to previous blogs for new due diligence requirements regarding filing). You file your tax return and miss important documents, you will have to file an amended return thus extending the period before your potential refund.

Another potential miss credit-wise is the Lifetime Learning Credit. Many people are familiar with the American Opportunity Credit for higher education expenses, but this is only allowed for four years. The Lifetime Learning Credit is worth up to $2,000 and can be applied to cover expenses for education outside the traditional four year college. Understanding what credits you are able to use is a key advantage to filing your taxes.

As always, if you have questions or need help filing your taxes, contact us at the Center for Financial, Legal & Tax Planning, Inc. We have professionals ready and able to answer your questions.