Six Steps to Prepare for Tax Season

Thursday, March 24, 2016 | 7:22 pm

Haydel Biel & Associates 3-24-2016It may not be your favorite event, but tax season is still an important part of the year and it is right around the corner. Here are some tips to help get ready.

Get Organized
Get all of your documents together already to make preparing your income tax return easier. You’ll need for example your Social Security number, W-2s from employers, and 1098s for any mortgage interest statements.

Make a Final Contribution to a Retirement Account
If you have a traditional and/or Roth IRA, you have until April 18th to make a final contribution for this tax year. For this tax year, IRA contribution limits are $5,500.

Decide How You’ll File
Will you be hiring an accountant or filing yourself via the good old-fashioned snail mail? If you have any complex filing needs, it may be worth to get an accountant.

Take Your Time
Filing last minute leads to simple mistakes. But even small mistakes can cause big problems and delays. Actually, one of the most common errors is incorrectly writing down the Social Security number!

Remember Lesser Known Deductions
Did you donate to charity, take a college course or refinance your home? You’re eligible for a deduction. Review your 1098 statement and settlement statement to see how many points you paid.

File Even If You Owe
You can apply for an extension but make sure you pay the IRA at least 90% of your tax liability if you do. An extension provides you additional time to file — not to pay. Installment payment plans are available for those eligible.

Haydel Biel & Associates are ready to help make sure your financial portfolio is on the right track. For more information you can visit www.hbawealth.com. The firm is located at 100 East Corson Street. Suite 310 in Pasadena. You can reach them at (626) 529-8347.

 

 

 

 

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