You filed an extension, now what?

It has now been almost a month since tax day. You have forgotten that stress of the last minute looking for documents, trying to remember what you donated, or logging in to your bank accounts trying to download forms. Maybe it just got too overwhelming and you filed a tax extension. Maybe you looked at everything and realized your situation has gotten too complicated to do it yourself. Maybe you entered everything into one of those tax programs and said, “I can’t owe that much, can I?”

So you filed an extension and put everything back in a drawer. Problem solved, right?

Well, extensions don’t make it go away, they just extend your time. So before you completely forget everything and end up in another mad dash in October, let’s get started doing your tax return.

There are three categories of things you need to collect:
1. Income – this could be W2s, 1099s, interest, dividends, business income, etc. Any way that money came into your pocket in 2016 needs to be accounted for.

2. Deductions – Did you spend any money that can lower what the IRS counts as taxable income? Retirement contributions, state income or sales tax, charitable donations, medical expenses, mortgage interest, tuition payments, etc. This is the most complicated category. There are so many possible deductions that may or may not apply to you. Having a tax professional on your side is essential.

Driving to a doctor’s appointment, donating snacks for last May’s PTA meeting, union dues, books for your college Freshman… All of these can be deductible in the right situation but if you haven’t been preparing and saving receipts and records it can get complicated.

3. Payments – This is an easy one. How much have you paid in taxes already? This will show up on W2s and certain other income forms. Or maybe you pay quarterly estimated tax payments? Don’t know what that is but it sounds familiar? You need to know how much you have paid in order to figure out how much they owe you.
Seriously…it is really that easy. The hard part is figuring out what those numbers are supposed to be after all the perks and penalties are applied. Don’t know what those are? That’s where I come in.

If you were overwhelmed before, chances are that feeling will not go away just because the deadline is not looming quite so close. KMS Tax Preparation has the knowledge and experience to figure out what deductions apply to you and help you owe less taxes. Isn’t that the goal in all this?

Tired of all my questions? Let’s get started finding the pieces to your tax puzzle. No reason to put it off any longer than you already have.

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