Taxes & Sympathy

With everything that we have been dealing with lately, taxes are probably the last thing on your mind. Fortunately, the government has taken pity on us and has given Davidson, Wilson and Putnam counties an extension on our tax deadlines. So, while you’re dealing with repairs and avoiding viruses, at least you have a little more time to get your tax act together.

I sat down with Donna Blackwell to have a little tax talk. She seemed like the obvious best choice to ask, since her company, Personalized Bookkeeping and Tax Services, Inc, has been named the best accountant in Mount Juliet for three years in a row!
Donna specializes in small businesses, personal income taxes, and rental properties, so she and I talked a lot about the right way to file and the best way to avoid getting into trouble. “During my 30 years working in Middle Tennessee, I’ve seen many costly mistakes that result in an IRS ‘love letter’ due to incorrect reporting of income and deductions.”
This year, the IRS has announced they will be making house calls to those who did not file taxes on or before 2018. If you haven’t been on your game and you’ve fallen behind, now is the time to hire a professional to help you get caught up!
So, what do you need to do to be ready to file?
Obviously you need to gather all of your W2s and 1099s to claim all of your income. If you have not yet received these, and you really should have, you need to request a copy. Don’t forget to count your taxable alimony, investment, social security, and other income. One of the most common mistakes people make is forgetting to claim income that was reported to the government.
If you don’t want to overpay, don’t forget to gather the information about your deductions, too. Childcare, education, medical expenses, and charitable donations are all deductible. Sometimes these numbers take a while to research and account for, especially if you haven’t been keeping track all year. Take a few moments and crunch these numbers, though. It will be worth it.
Misreporting your income or deductions is just asking to get audited. Your employers are also reporting their income and expenses. They tell the government how much they paid you, so if you skip a W2 or 1099, the government may know before you do. The best way to prevent an audit and to save the most money is to hire a professional like Donna. I was surprised how affordable it can be, too! If your taxes are complicated, think of an accounting fee as insurance and bite the bullet.
If you’re among the people dreading an IRS house call from too much tax debt, there are services for that, too. Don’t be afraid to ask for help. You don’t have to live in fear.
Our new filing deadline is July 15th, so you still have plenty of time to gather your paperwork together.