5 Critical Mistakes to Avoid on Your Tax Return

Got your mind on your money, and your money on your mind? If you want to get the most out of your tax return this year (and avoid the dreaded IRS audit), avoid making these critical mistakes:

Missing the deadline.

First things first: know your deadline! The IRS will begin accepting tax returns on Monday, January 23rd, 2017. The deadline (also known as National Tax Day) is Tuesday, April 18th. If you wish to apply for a six-month extension, you must do so by this day. However, any taxes you owe are still due on April 18th.

Math miscalculations.

This is the single most common mistake on tax returns each year. Whether you made an error in your calculations or while transferring your numbers, you can bet the IRS will quickly detect your mistake. Having your taxes prepared by a professional can help minimize this risk.

Misspelled names.

The IRS cares about numbers, but names are important too. If the name of the taxpayer, spouse, or dependents doesn’t match what the IRS has on file, your return could be significantly delayed.

Forgetting additional income.

You’ve included your wages from your full-time job, but you could be forgetting about these common sources of additional income:

• Part-time or side jobs
• Job that you only worked at the start of the year (if you worked just one day in 2016, it counts!)
• Savings and investment accounts
• Unemployment benefits
• Jury duty pay

Wrong bank account numbers.

Imagine this: you’ve double checked your numbers. Triple checked, even. Everything is right and you are ready to submit your form to the IRS. You opt for the direct deposit, and enter the wrong routing or bank account number. Don’t let this happen to you – make sure your return is going to the right place!

Having an experienced tax professional by your side will not only ease your stress and help you avoid making mistakes, they can find additional deductions and credits that you may not be aware of. Trust American Investment Planners, LLC to help you file your tax return this season.

To schedule an appointment with one of our tax professionals, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Tips For Filing Taxes As A Single Parent

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

It's certainly not unusual to get confused when it comes to filing status - there are so many different options and variations of those options that it can be hard to keep up with what's what. But as your family financial planner, we're here to clarify anything that may not make sense at first, starting with three things that single parents need to know when filing:

Head of household: It may seem obvious to list your filing status as "single," but when you file as "head of household" instead, you put yourself in a position that may offer more benefits. Overall, you're likely to pay less in taxes when you file this way, and you might even be able to claim higher deductions. If you were not married on the last day of the previous year, had children who lived with you for six months or more, and were able to provide more than 50% of the income needed to support your home, you're eligible to file this way.

Claiming dependents: According to the IRS, a child is considered a dependent if they lived with you for at least six months of the year and were financially supported by you during that time. Depending on the custodial agreement you have with your child's mother or father, you may be the one to claim them every year, or, you might be on an alternating yearly schedule. If it's your turn to claim your child, make sure you do so that you become eligible for more credits and deductions.

Child care credits: If you are working and earn an income or are a full-time student who requires someone or a program (such as an after school program or camp) to look after your child, claim the child care credit. In order to be eligible, your child must be younger than 13 years of age, and if it's a person who watches your child rather than a program, that person may not be their other parent. 

Running a home and caring for a child or number of children can be a difficult task for any one individual, so there's no need to put any more stress on yourself come tax time - that's what we're here for. The team at American Investment Planners LLC has experienced many of the same situations our clients have, so we know exactly what solutions to offer.

For more information about our tax planning services, please visit us on our website or give us a call at (516) 932-5130.

How To Organize Yourself For Tax Season

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Although the tax deadline is a few days later than usual this year, it's still important that you get yourself prepared to file early on. By getting organized ahead of time, you can reduce the chances that you'll feel frazzled and overwhelmed the day before you meet with an accountant to submit all of your paperwork, and you can prevent yourself from having to deal with harsh penalties that are applied to late returns.

So what's the best way to get ready? Below, we describe a few strategies that you can use to put yourself in a good place:

Review last year's information: The best place to start is by looking at last year's tax return and/or files that you used to determine which documents are going to be of importance. Chances are anything that came in handy last year will do the same this year, so instead of having to dig through paperwork a mile high at random, figure out which exact documents might come into play so that you can begin looking for those first.

Set deadlines: Even though there is a universal tax deadline in place, set some other deadlines for yourself to help you stay on track. For example, set a deadline for when you need to make an appointment with an accountant (if this is the method you choose to file), then set another for when you need to have all of your paperwork in order. 

Choose hard copy or digital: While some people prefer to have everything written out by hand and stashed away in physical folders, others have taken to the digital realm and prefer to keep copies of documents and the like on their computer. So, decide which works best for you and then begin setting things up. If you prefer to be hands on, consider getting a filing cabinet where you can neatly organize receipts, bank statements, paychecks and other similar items. On the other hand, if you prefer to work in front of a screen, set up some digital folders or a spreadsheet to help you keep track of expenses and financial documents.

Find a work space: Regardless of whether you like to look at hard copies or digital copies of documents, you need to have a clear space to work in when it comes to getting things ready. With that said, find a space in your home that is relatively free of distractions and clutter so that you can concentrate when working. When you sit yourself down in a high-traffic area such as your dining room, it can be pretty easy for physical copies to get lost with the mail or other general paperwork, and it can certainly get noisy.

Considering that missing the tax deadline is something you want to avoid, it's extremely important that you begin getting organized now! Which of the above strategies will you use to do so?

Here at American Investment Planners LLC, we understand that tax season can be a pretty tricky one, which is why we want to help you get everything sorted out on time! For detailed information about our tax related services, please call (516) 932-5130 or email info@americaninvestplanners.com.

Tax Season Changes For 2016

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Although it may feel like you just got through the tax craze for 2014, it is time once again to start preparing your financial statements and documents so that you can file for 2015 on time. But don't move too quickly - there are some important changes you need to know about that are taking effect this year. They are:

1. Since Washington D.C's observance of Emancipation Day is on Friday, April 15th this year, tax day for most taxpayers is April 18, 2016. For New England states that observe Patriot's Day, your tax day is April 19, 2016.
2. If you do not have Affordable Care Act approved health insurance, you will receive a higher penalty this year - $695 per person, $2,085 maximum penalty per household. To avoid this penalty, you must be covered under an accepted health plan.
3. Tax brackets, which are used to govern different groups of people, are expected to rise by about 0.4% for 2016.
4. Up $50 from last year, taxpayers are permitted to take a personal exemption of $4,050 on their tax returns.
5. The educator expense deduction, which was on its way to expiring, will now be a permanent tax break as a result of the new spending bill - teachers can use this to deduct up to approximately $250 for classroom supplies whose cost has not been reimbursed.

But that's not all that's about to be different; to learn more about the changes taking place in 2016, check out this article from CBS Money Watch and this article from The Wall Street Journal.

Since filing taxes is something we will all experience, it's important to be as prepared as possible so that doing so goes smoothly. To check out the resources we have available to help with the management of your taxes, please click here. Then, for more information about our tax planning services and how we can help you during this busy financial season, please give us a call at (516) 932-5130.

What To Do If You Missed The Tax Deadline

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you have successfully filed your taxes, then the fact that April 15 has passed is likely not a concern. However, if you failed to meet the tax deadline, then the fact that April 15 has come and gone is likely something you are going to struggle with until a solution is found. Which of these two scenarios best describes your current situation?

If you fall into scenario B and have not filed your taxes yet, the good news is that you don't have to panic...yet. See below for what you should be doing to avoid the consequences of being late on your return:

File As Soon As Possible: Now that the deadline has passed, you must make it a priority to file as soon as possible. Especially if you owe on this year's return, the sooner you file, the less you will accrue in interest and penalty charges. If you're not sure where to start or how to go about filing, the team of advisors at American Investment Planners LLC can point you in the right direction.

Ask For An Extension: Although you will still be required to pay back any taxes that you owe when submitting an extension request, it does give you extra time to meet with your tax professional and fill out all of the paper work you have yet to complete. For more information about filing tax extensions, check out one of our previous blogs here.

Apply For A Payment Plan: If you completed the paper work but failed to send in a check, you may be able to set up a payment plan with the IRS. Should this be the best solution for you, connect with us to learn if you qualify and to ensure that you fill out the request correctly.

Now that you know how to proceed if you haven't met this year's tax deadline, we encourage you to get started as soon as possible! For more information about how we can help, please give us a call at (516) 932-5130 or toll free at (866) 932-5130 today!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.