April 27, 2020

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

  • Taxpayers could potentially qualify for credits on their tax return that could either lower their tax balance or produce a larger tax refund. 
  • The IRS recommends that taxpayers check their withholdings throughout the year to ensure they are on the right track.
  • If you’re a 1099 earner or you’re not withholding enough from your paychecks, you will most likely need to make estimated tax payments throughout the year.

Tax filing season is upon us which means there may be some surprises you encounter along the way that may or may not be unpleasant. So what can you do to avoid being caught off guard when filing your taxes? 

Below are a few ways to prepare to get the most out of filing your tax return:

Understand what you qualify for. There are a vast amount of tax credits that you could potentially qualify for. The IRS isn’t going to tell you what you’re allowed to place on your tax return, so it is up to you as a taxpayer to do your own research or inquire with a tax professional to see if the type of expenses you have incurred can possibly go on your return. A few types of credits that you may qualify could be the following:

  1. Lifetime learning credit– this is to help offset the costs of post-secondary education; eligible students could earn up to $2,000. The credit is available to those who make $58,000 or less, or for married couples earning $116,000 or less. 
  2. Child and dependent care credit – this is to help offset the cost of babysitting and daycare. This is available to taxpayers who have children under the age of 13.
  3. Savers tax credit – Those who qualify have made eligible contributions to retirement plans such as a 401K. Taxpayers with the least income will qualify for a larger credit – up to $1,000 for those filing as single, or $2,000 for those filing jointly.

Do a withholding checkup. The IRS recommends that taxpayers check their withholdings throughout the year to ensure they are on the right track to receive a refund and to avoid owing at the end of the year. If your income has increased during the year, it is advised that you do a checkup to ensure that you are withholding enough or if more needs to be taken out of your paycheck. 

Make estimated tax payments. If you’re a 1099 earner or you’re not withholding enough from your paychecks, you will most likely need to make estimated tax payments throughout the year to ensure you don’t owe a tax liability come next filing season. The IRS allows taxpayers to make their payments via ground mail or online. Taxpayers are required to make their payments quarterly or monthly to ensure they do not receive a penalty when they file their taxes. If you need assistance calculating your estimated tax payments, the IRS encourages you to use their withholding estimator to see how much you should be making in payments. 

If you need tax help, contact us for a free consultation.