Tax Tips
Tameka E. Lester
Georgia State University
of Law Clinical Assistant
Professor/Associate
Director
[email protected]
Most taxpayers don’t start think-
ing about their tax return until
the beginning of the year; how-
ever, ideally you should be think-
ing about tax planning all year. In
addition to saving you time dur-
ing filing season, planning for tax
season throughout the year can
also save you money by allowing
you to properly claim credits, de-
ductions, and expenses you are
entitled to. Here are a few points
to consider when thinking through
tax-related consequences.
Different Tax Returns
There are several different types
12
April 2018
of tax returns, and depending on
your circumstances you may need
to complete more than one return:
Individual Tax Return
Most individuals have a yearly fil-
ing requirements. Whether some-
one has to complete an individual
tax return will depend on their
income (both the amount of in-
come and type of income), filing
status, and age. If you have a filing
requirement, you must report all
your taxable income to the IRS. In
addition, the IRS allows individu-
als to claim certain deductions and
credits to minimize the amount
of income they are actually taxed
on. Each credit and deduction has
its own requirements and restric-
tions, so it is important to look at
them separately to see if you quali-
fy. Some deductions, such as those
governing charitable donations,
medical and dental expenses, and
unreimbursed employee related
expenses require you to give an
accounting of the total amount
you paid during the year. In order
to ensure accurate records, the
best practice is to keep all your
receipts and organize them on a
regular basis. The more organized
you keep your records, the easier
it will be to prepare for the filing
season or address any concerns
the IRS may raise in an audit or
examination.
Business Tax Returns
In addition to their individual tax
returns, business owners must re-
port business income and expens-
es on a business return. There are
many different options available
to business owners when deciding
how to structure a business. Each
business structure has different