A Quick Review of Tax Basics
You don’t have to become an accountant to minimize the taxes you pay. And depending on the complexity of your financial situation, you might not need to hire one either.
But whether you do your taxes yourself or bring in a pro, you can still avoid some of the bigger mistakes that can cause you to overpay or get audited. Here are some very basic tax strategies that are covered in more detail on BankRate.com:
- Over-withholding is bad . . . and so is under-withholding. If you are either getting a big refund or writing a big tax check this year, be sure to adjust your withholding for 2010.
- One of the best ways to avoid getting audited is to file your taxes on time. When you file late, you are already attracting IRS attention.
- Get professional help if your situation requires it. It’s tempting to try to keep things simple by doing your own return or hiring a quick-and-easy tax service. But if you have the sense that you are cutting corners, hire a well-recommended pro. Oversimplifying things can case big problems later on.
- Remember that an extension is just that. It only delays the date when you have to file your return. And remember, you can only file for an extension if you can document the fact that you are due to get a refund.
Special Note: Get an early "refund" from StraighterLine. Enroll in one of our Online Accounting Courses before April 22, 2010 and enter TAX2010 in the promo code box during check out and we will "refund" you $30.00. Just think next year at this time you can be your own accountant.
(Offer valid on new enrollments between 4/12/2010-4/22/2010.)