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 Bring to Your Tax Appointment

If you are having your taxes prepared by a professional this season, it is up to you to provide them with proper documentation. Insufficient or missing paperwork can result in a lower tax return, or even an audit.

While every taxpayer’s situation is different, this is a good general list of items you should bring with you to your tax appointment:

Personal Information

• Your social security or tax ID number
• Your spouse’s full name and social security or tax ID number
• Your dependent’s full name, birthday, and social security or tax ID number
• Three years’ worth of previous tax returns

Income Statements

• W-2 Forms
• Unemployment forms
• Jury duty records
• Rental income
• Hobby income and expenses
• Gambling income
• Prizes and awards
• Trusts

Itemized Deductions

• Mortgage statements
• Healthcare expenses
• Employment-related expenses
• Records of charitable donations
• Job search expenses
• Moving expenses
• Theft losses
• Childcare expenses

Savings & Investments

• Interest and dividend income
• Income from sales of stocks
• Dates of stock acquisition, and the price you paid for them
• Other expenses related to your investments

Retirement Funds

• IRA contributions and total value
• Income from pensions
• Social security income

Vehicle Information

• Total miles driven
• Total business miles driven
• Amount of parking and tolls paid

If You Are Self-Employed…

• 1099-MISC
• 1040ES
• Income and expense statements

If you received any other tax documents which weren’t listed above, you should also bring those. When in doubt, it’s always better to bring something!

American Investment Planners, LLC offers professional tax preparation services to individuals and businesses across the country. Let us make your tax season less taxing. To schedule an appointment with one of our tax professionals, 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.