Tax season 2016 tips: What should taxpayers know?
Tax season is here, which means it's time to start filing for federal tax returns by the April 18 deadline. It's important to keep track of the things that need to be done. Here are several tips that can help taxpayers kick off their filing process.
In a report by Fox61, Paul Schatz, president of Heritage Capital LLC, shared some valuable tips for the tax season. He said that to start tax season, one must decide on whether to ask for some assistance from a professional tax preparer or not. Taxpayers should also take note that there were no major tax law changes for tax year 2015.
Time also suggested keeping a record of credit card summaries, check emailed receipts and checking accounts to consider possible deductions. And for those who are hiring a tax preparer for the first time, they must make sure to contact the professional immediately to set up an appointment.
Get Our Latest News for FREE
For those needing more time to complete the filing process, IRS gives a 6 month extension upon request. Those who are living outside the U.S. are also given an automatic extension without the filing of an extension form. The deadline is until June 15. However, this extension is not applicable if the tax payer owes taxes. He or she will need to pay by April 18.
With regards to the Health Savings Account, one can contribute and deduct up to $3350 for a single plan and $6650 for a family plan. Those who are aged above 50 can contribute another $1000. To avoid being scammed, Buffalo Law Journal detailed that taxpayers should be aware that IRS will never call to demand immediate payment or call about taxes owed without sending in a bill first.
