With the clock ticking down to April 15, Ernst & Young is offering taxpayers some last-minute tips if they haven’t yet filed their taxes.
“Reviewing last year’s tax return could ultimately save you money,” said Greg Rosica, an Ernst & Young LLP tax partner and contributing author to the Ernst & Young Tax Guide 2013. “Your 2011 income tax return could contain items that carryover to 2012 or remind you of many deductions, credits and savings you’re entitled to this year.”
The firm offered the following tips:
1. Deduct the cost of tax preparation software and publications.
2. Check for receipts. Deductions for cash contributions to charity need a bank record, such as a canceled check and a dated receipt from the charity.
3. There’s still time to make a contribution to your IRA.
4. Always check your math. Even if you rely on software, check to make sure you input the correct numbers.
5. Include your Social Security number on every page of the return so if any page is misplaced by the IRS it can be reattached.
6. Write your Social Security number, form number and tax year on the face of checks made payable to the United States Treasury.
7. Be sure to sign your return!
8. Keep copies of all documents sent to the IRS.
9. If you’re married, check to see if filing separate returns rather than a joint return is more beneficial.
10. If you worked for more than one employer, be sure to see if you can claim a credit for any overpaid Social Security taxes withheld from your wages.
“Requesting an automatic six-month extension may give you until October 15 to file, but don’t forget that full payment of your tax bill is still due on April 15,” said Rosica.
Visit www.ey.com/EYtaxguide for more tips and information.