Entrigue Magazine December 2014 October 2014 (Case Cover) - Page 45

GORDONSTAXADVICE.COM IT’S NOT TO LATE TO FILE YOUR TAXES October 15th has come and gone, but many taxpayers don’t realize they can still file their 2013 income tax returns and get a refund. In fact, if you have not filed your 2012 & 2011 income tax returns, you can also receive a refund for those tax years. But if you owe, The Internal Revenue Service will impose penalty and interest for not filing and not paying for those same years. Many taxpayers after filing their initial tax returns realize they left off deductions, such any Charitable Contributions, Mortgage Refinance Points, Educational Expenses, Energy-Efficient Home Improvements, Military Reservist Travel Expense, etc. They can amend those tax returns and receive a refund for the years 2011, 2012 & 2013. FOURTH QUARTER TAX TIPS As we enter the fourth quarter of 2014, there are a few things to consider as you begin to access your taxes for the coming year. ADJUST YOUR WITHHOLDINGS Did you get a big refund and are you struggling to pay your monthly bills? Or do you need more money in your paycheck to pay unexpected bills or pay down on some bills. Then you probably should adjust your withholding so that you won’t get a big tax refund and be more comfortable right now. Some people view tax refunds as forced savings. That’s not necessarily a good idea. It means Uncle Sam, not you, has control of your money for a year. EVALUATE YOUR ESTIMATED TAXES Estimated tax payments are required if you get income that isn’t subject to withholding. It’s the IRS way of ensuring that you’re paying as you earn on all your income. By making the proper four tax payments a year, you’ll help ensure you don’t underpay your taxes. That’s important because if you owe too much at filing time, you could face a tax penalty on April 15th. This time of the year is a great time to reassess your estimated tax situation. Look at what you’ve paid via April 15th, June 15th, and Sept 15th 1040-ES and see whether your schedule is still on track. If not you can adjust your January 15th, 2015 estimated tax payment. GET ORGANIZED Do you still have your 2013 tax materials stacked in a corner somewhere? Straighten it out now. If the IRS has questions about your return, it will be helpful to put it in an easily accessible order. While you are at it, do the same for your 2014 tax materials. Your tax organization system doesn’t have to be elaborate. An accordion file works wonders for many folks. The key is to pick a system in which you can easily file and then find documentation such as business expenses receipts, charitable, educational and the like. Entrigue Magazine | October 2014 45