Another tax season is upon us, and as is customary, individuals and businesses will likely have plenty of questions while preparing their tax returns. With that in mind, Tyrpak Accounting Services of West Seneca offers several tips to help guide you through this often difficult and complicated annual process.
• To reduce your taxable income, contribute as much as possible to your 401(k) retirement account, IRA, or other retirement accounts. You still have time after the tax year has ended to contribute to an IRA.
• Also, remember that donations to charities may help reduce your tax bill if you itemize your deductions when filing. In addition to monetary donations, you can also donate usable items from around your home or business to a qualified charitable organization. Remember to keep an accurate list of your donations to determine fair market value, and ask the recipient organization to provide a receipt.
• If filing an extension, please remember that extensions only extend the time you have left to file, not the time you have to pay any taxes that are owed. If you owe money and file an extension, you still have until April 15 to pay regardless of the extended deadline. If your payment is late, you will be responsible for interest and penalties.
• Figure out what tax credits you could be eligible for; maybe you thought tax deductions and tax credits are the same thing. They’re not. Unlike tax deductions, tax credits can directly reduce the dollar amount of taxes you may owe to the IRS.
“Completing and submitting tax forms can be a challenge for even the most astute individuals and business owners,” said Paul Tyrpak, owner of Tyrpak Accounting Services. “Licensed tax preparers keep up to date on the intricate and constantly changing tax laws and codes, and how they can be applied in the most beneficial ways. If you have any doubt at all regarding your ability to file accurately, I would strongly suggest meeting with a qualified professional to guide you through the process.”
Tyrpak Accounting Services has been providing state and federal tax preparation services for individuals, couples, corporations, partnerships, LLCs and nonprofits for more than 25 years. Additional services include 401(k) and retirement consulting, stock and investment advice, insurance advice, business planning, estate consulting, payroll, bookkeeping, and more.
For more information, please visit http://tyrpaktax.com or call Paul Tyrpak at 674-0247 to schedule an appointment or consultation.
