3 Last Minute Tax Tips for Procrastinators

Time is running out to file your 2017 tax returns. With the April 17th deadline quickly approaching, procrastinators everywhere are scrambling to submit their paperwork on time.

Does this sound like you? Don’t panic. Take a deep breath and follow these three last-minute tax tips from the professionals at American Investment Planners, LLC…

Take your time.

Better safe than sorry. The old adage holds true when submitting your tax return. Even if you are filing last-minute, it’s important to take your time when preparing your paperwork. Rushing through increases your chance of making a mistake, which increases your chance of an audit. Some of the most common last-minute errors include:

• Mathematical mistakes
• Misspelling names
• Entering the wrong social security number(s)
• Failure to sign or date your return

File faster online.

Submitting your taxes online offers tons of benefits. It’s quick, easy, allows for faster refunds, and can even help minimize mistakes and maximize deductions. Last-minute filers will love the ability to submit their returns during the waning hours of Tax Day, after post offices have closed. Not to mention, it’s nearly impossible to schedule a meeting with a professional tax preparer this late in the season.

Consider filing for an extension.

If you feel that there is no way you can get your taxes submitted by the April 17th deadline, you can always apply for an extension, pushing the due date back to October 16th. Beware, if you owe money to the IRS, you will still need to pay your debt before April 18th. An extension on your paperwork is not an extension on your bill. You can learn more about the advantages and disadvantages of applying for a tax extension by clicking here.

American Investment Planners, LLC proudly employs a team of professional tax planners and advisors to help with all of your financial needs. To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

What To Do if You Get Audited by the IRS

If there’s one thing American taxpayers hate more than paying taxes, it’s being audited by the IRS. While your chances of an audit are slim (about 1% if you make less than $200,000), they do happen, so it’s best to be prepared just in case.

The tax professionals at American Investment Planners, LLC have decades of experience dealing with the IRS. Here’s what they say you should do in the event of an audit:

• Take a deep breath. Audits can be intimidating, but most of them are no big deal. Usually, an audit involves answering a few additional questions via mail; it’s rare to meet with an auditor in person.

• Figure out why you are being audited. Often, the IRS will only need additional information about one portion of your tax return, not the entire thing. Once you know why you are being audited, only provide the information the IRS specifically asks for. Supplying anything more risks the chance of broadening the audit scope.

• Gather your documents. Your audit letter should include a list of the documents you need. These may include:
• W-2s
• 1099s
• Bank statements
• Proof of income
• Investment statements
• Receipts and other proof of expenses

• Be polite and responsive. Like dealing with the police, much of the process is at the discretion of the auditor. If you are kind, polite, and accommodating, you will have a more pleasant experience than if you act like a jerk.

• Consider hiring a professional. You don’t have to show up to your audit alone. In fact, you may not have to show up at all. It’s recommended to bring a tax professional with you, or have one go in your place. If you choose the latter, you will need to submit IRS Form 2848.

American Investment Planners, LLC has been helping Americans file their tax returns for decades. To schedule an appointment with one of our tax professionals, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

American Investment Planners does not provide tax or legal advice. Consult with a qualified legal or tax professional regarding your particular situation.

Advantages and Disadvantages of Applying for a Tax Extension

Important reminder: Tax Day 2017 is Tuesday, April 18th. This is the last day individuals can submit their tax returns to the IRS, unless you file for an extension.

Tax extensions extend this deadline to October 16th, giving individuals an extra six months to prepare and submit their paperwork. While this sounds like a dream come true for busy families and procrastinators, it does have its drawbacks.

Let’s take a look at some of the pros and cons of filing for a tax extension:

Advantages of filing for a tax extension:

• It’s easy. Few things are easy when it comes to the IRS, but filing an extension is one of them. Just file before the deadline and fill out the form correctly, and they will be happy to grant you an extension – no questions asked.

• Avoid late fees. Submitting your taxes past the deadline (without filing for an extension) is a fineable offense, and could cost you 5% of your refund check each month you are late, with a cap of 25%. You worked hard for your money, don’t lose it because you didn’t file on time!

• Potentially save yourself an audit. If you rush to submit your taxes before the deadline, chances are greater you will make a mistake, resulting in a dreaded audit. Giving yourself more time to submit your taxes reduces your chances of a critical mistake, and thus reduces your chance of an audit.

• Cheaper preparation. Professional tax preparation services are at their busiest during March and April, and often charge a premium during these months. Not only will appointments be easier to make after the deadline, they might even be cheaper.

Disadvantages of filing for a tax extension:

• You don’t get an extension on taxes owed. Unfortunately, an extension on your paperwork is not an extension on your bill. If you owe money to the government, you must still pay it before the April 18th deadline.

• You delay your refund check. The longer you wait to file your return, the longer you wait for your refund check – it’s as simple as that.

• You are only prolonging the inevitable. Your taxes won’t be any easier six months from now. If you procrastinated this time around, chances are good the same will happen in October, only without the option of an extension to save you.

After weighing out the pros and cons, it makes sense for most people to file their taxes before the deadline, barring any extenuating circumstances. If you are stressing out about getting yours done on time, contact the tax professionals at American Investment Planners, LLC. We will have your return submitted before the deadline, and guarantee to get you the biggest refund possible.

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

9 Wise Ways to Spend Your Tax Refund

So, you followed our tax advice and were able to maximize your 2017 refund. You’re off to a good start, but what good is a big refund if you don’t spend it wisely?

While it may be tempting to take that refund check to the mall and spend it on a fancy new toy, you will thank yourself later if you exercise restraint and invest this money.

Here are nine smart ways you can spend your tax refund this year:

1. Re-invest the money in a retirement account. Roth IRAs allow your money to grow tax-free and have no minimum required distribution, making them a popular choice.

2. Pay off some credit card debt. Pay off your accounts with the highest interest rates first.

3. Make an extra payment on your mortgage. If you are lucky enough to have no high-interest debts, consider putting your money towards your mortgage.

4. Build your emergency fund. Your emergency fund should be able to support up to six months’ worth of living expenses.

5. Put it towards your next big purchase. Whether you have a new car or home improvement project on the horizon, your tax refund can be used to pay off a significant chunk of it.

6. Use it on your insurance policy. Upgrade your policy or just pay next month’s premium, the choice is yours!

7. Invest in your career with additional training or an industry conference. You are your own biggest source of income, so it makes sense to invest in yourself.

8. Make a charitable donation. Doing the right thing just feels good, plus it can reduce your taxable income for next year.

9. Treat yourself. There’s nothing wrong with spending part of your tax refund on yourself. The key word is part: try to limit this spending to 10% or less of your total refund.

Whether you are looking to maximize your tax return, or just need advice on spending it wisely, the financial consultants at American Investment Planners, LLC are here to help. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

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.

5 Ways to Maximize Your 2016 Tax Refund

Tax season is upon us, and many Americans are looking forward to receiving their refund check. If you felt like you were shortchanged by Uncle Sam last year, here are five tips to help you maximize your return for 2016:

1. Start early. The best time to start filing your tax return was yesterday. The second-best time is today. Procrastinating leads to pressure as Tax Day draws near, and it is more likely you will make a mistake. Starting early allows you to take your time and be as thorough as possible.

2. Rethink your filing status. One of the first decisions you make when completing your tax return is your filing status. There are five statuses to choose from: single; married filing jointly; married filing separately; head of household; and qualifying widow(er) with a dependent child. 9 out of every 10 married couples file jointly, however, filing separately may yield a higher return depending on your circumstances.

3. Itemize your deductions. The standard tax deduction is $6,300 for singles and $12,600 for married couples filing jointly. These standard deductions can help lower your taxes, but taking the time to gather your receipts and make an itemized list may lower your taxes even further.

4. Claim credits. Credits are much more effective than deductions at reducing your tax bill and maximizing your refund. This is because credits are netted directly against the amount of money you owe, as opposed to merely reducing your taxable income. Available credits include the earned income tax credit, the child and dependent care credit, and education tax credits.

5. Max out IRA contributions. This tried and true strategy allows you to reduce your taxable income while simultaneously building your nest egg. 401(k)s and Traditional IRAs both offer dollar-for-dollar income reduction and can even qualify you for the $1,000 saver’s credit.

Bonus Tip: Seek professional help. Having an experienced tax professional by your side will not only ease your stress, they can help you find deductions and credits that you were not aware of. Trust American Investment Planners, LLC to help you file your tax return this season.

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

Who Makes Up American Investment Planners LLC?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Led by Lee Rosenberg, CFP, American Investment Planners LLC has been providing comprehensive financial planning services to generations of families since 1984. We believe that the ultimate test of a financial plan is the legacy you can pass on to your family and favorite charities, and as such, we are deeply committed to helping individuals all over the country prepare for things like the birth of a child and retirement, as well as assisting with financial duties such as filing taxes! 

Since a business is nothing without its employees, we've taken the past year to introduce each of our professionals individually. In case you've missed out on any, below, we've brought together each of our team members so you can learn more about them and their contribution to our firm - just click on their name!

Lee Rosenberg: Lee Rosenberg is our Founder and President! His resume includes over 30 years of experience as an investment advisor and industry leader, and he's even been named one of America's top 100 independent advisors by Registered Representative magazine for the past 5 years!

Barbara Magor Deel: Barbara Magor Deel is our Vice President of Financial Planning! Joining our team over 20 years ago, Barbara has grown with both our firm and her clients and has done an incredible job - we've even had the pleasure of working with her sons as interns!

Steven Hoffman: Steven Hoffman is our Vice President of Investment Services! He joined the American Investment Planners LLC team over 15 years ago and has over 35 years of experience working in securities, annuities, insurance, retirement and estate planning.

John L'Abbate: John L'Abbate is our Director of Tax Planning! He worked for several accounting firms, a non profit organization and a tax shelter syndicator before joining our firm full time in 1983!

Brett Goldstein: Brett Goldstein is our Director of Retirement Planning! At American Investment Planners LLC, he works with individuals on retirement planning and works with businesses on employee benefits. He is even a nationally known author, speaker and media personality!

Brian Amato: Brian Amato is our Senior Investment Advisor! His financial planning career began in 1999 when he started working for Morgan Stanely, and just one year later he joined our team! A cool fun fact for you? Brian is a U.S Coast Guard certified captain!

Karen Hurlbert: Karen Hurlbert is the Client Services Assistant for Brian Amato! She has been a part of the insurance and securities industry for over 20 years, and officially joined our team in 2013 to help oversee Brian Amato's clients.

Craig Bergen: Craig Bergen is our Manager of Tax and Financial Planning! Craig first came on board with Lee Rosenberg in 1998 as a tax preparer, and since then has become a Series 7 securities representative and has completed the Certified Financial Planning program at CW Post!

Jessica Bach: Jessica Bach handles Wealth Management Services for us! She started working for Lee Rosenberg in 1999 as a Client Services Manager, and in 2011, she stepped into this new role and began working with clients on asset managed accounts!

Nicole Nugent: Nicole Nugent is our Assistant Financial Representative and Office Manager! She first began with us in 2009 to assist with managing our accounting needs, and since then, she's expanded in her role to also help with office management duties!

Christine Whiteman: Christine Whiteman is our Marketing Director and is in charge of Client Communications! In 2004 she started with us as a part time receptionist, but she quickly began to assist clients with account questions and eventually took on more responsibilities in our firm. Today, she helps with marketing campaigns, assists with client services and coordinates all client events/seminars!

Debra Hubschmitt: Debra Hubschmitt is our Front End Manager! A member of our team for over 20 years, Debbie is the first face clients see when they walk into our office. Along with welcoming our clients, she also works with our company's advisors to maintain their calendars and schedules!

Marguerite Maldari: Marguerite Maldari is our Client Services Manager! One of her main responsibilities is to oversee the relationship between our clients and Cadaret, Grant & Company, Inc. She also assists our clients to oversee their accounts, handle trades, process annuity applications and more!

Lorraine Basile: Lorraine Basile works for our firm in Client Services! She's been with us since 2012 and has proven her innate ability to be a huge team player. Her main duties include preparing financial reports for client meetings and for managing quarterly mail outs of financial reports for clients.

Danette Gramegna: Danette Gramegna is a part of our Client Services team! Her career in the financial planning industry began when she started working for Merrill Lynch as a fill in for an employee who was out on maternity leave, and later joined our firm in February of 2007!

THANK YOU to all of our amazing employees for making our business the best it can be!

To personally speak with a member of our team and learn how we can help you next, please give us a call at (516) 932-5130 today. More information is also available at www.americaninvestmentplanners.com.

Reminder! Tax Scams You Need To Be Aware Of

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Although the tax deadline is only a few weeks away, there is still plenty of time to be targeted by scammers who are looking to get a little extra out of you during this tax season. Earlier this month, we warned our readers about three of the most common tax scams that we often hear about, and today, we're here to remind you about them and share our recommendation for what you should do if you think a scammer is coming after you; read more below.

Common Tax Scams

While some tax scammers may use an original approach, three of the most common that people experience are: 

1. Phony phone calls
2. False links in emails
3. Frivolous arguments

One of the most important things to remember is that the IRS' preferred form of communication is U.S Mail, so if you ever get a phone call or an email from someone who claims to be a representative, approach it with much caution. And remember, the IRS will never ask you for your financial information over the phone, require you to pay without actually sending you a bill, demand payment without giving you the opportunity to ask questions or insist that you use a certain method to pay your taxes - if either of these situations present themselves to you, hang up and/or ignore the email.

Another important thing to remember is that the IRS will never threaten you with arrest. Scammers will often make you think that legal action will be taken against you if you do not comply with their request, but that is an immediate sign that you are dealing with someone who is falsely representing themselves.

Where frivolous arguments are concerned, we'd all love to be told that we are exempt from filing taxes, but the truth is that we are all required to file no matter what, so if someone positions you as the "lucky one" this year, don't fall for it!

Actions To Be Taken

If you suspect that you're being targeted by a scammer this tax season, the best thing to do is to contact your financial planner so that they can confirm if what you're being told is true or false. Then, let the IRS know about it - here is a list of things you should do if you receive IRS-related communication that seems rather suspicious.

Whether you actually experience a tax scam or not, know that we at American Investment Planners LLC want to see you and your information protected at all times, and we can help! To learn more about our financial planning services, please visit our website or give us a call at (516) 932-5130 today.