Well you have filed taxes for this year and are getting a big refund. What to do with this windfall? How about kicking yourself. You do realize that a “tax refund” is made up of two parts – you give your federal or state government YOUR hard earned money throughout the year and when you file your taxes, said government gives you YOUR money back. Effectively you are letting the government have it interest free for the year (so it gets the ‘float’ on the money!) then returns it to you. You are hiding your money under the IRS mattress (except you don’t have access to it.) Here is another idea. Say you get approximately a $4000 refund every year when you file your taxes. What would happen if you reduced your withholding $250 a month and put that into a savings account paying .75% a year. That means you have $3000 in the bank with about $15 interest by the time you would get your $1000 tax refund on Feb 28. Doesn’t sound like much does it? Well what if you put the money into a mutual fund paying about 5% a year in dividends? Now you have $100 in dividends [...]
Tax Musings of a Burbank CPA: Tips for Filing an Amended Return
Did you or your preparer make a mistake on a tax return? Did more information come in affecting a return that has already been filed? This tip from the IRS gives details about amending a previously filed tax return: http://content.govdelivery.com/accounts/USIRS/bulletins/ff9385?reqfrom=share Most important to remember is that with the IRS you have a statute of limitations that runs three years from filing – so if you always filed by April 15, the oldest return you can now amend to get money back is limited to the 2012 return, which can be amended until April 15, 2016. If you filed an extension for 2011, you may still be able to amend that year. Talk to your preparer for more information. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Tax Musings of a Burbank CPA: Still Time to Make Your IRA Contribution for the 2014 Tax Year
Well we are getting close to the tax filing deadline (sixteen days from today!) Just remember that one thing you may qualify for to reduce your 2014 income tax is make a traditional IRA contribution up until April 15, 2015 (one of the few after-the-fact tax saving ideas allowed.) See more information at this tip from the IRS below: http://content.govdelivery.com/accounts/USIRS/bulletins/fbb96b?reqfrom=share If you qualify you can contribute $5,500 if you are single ($6,500 if you are over 50.) If you are married you may be able to double this amount. A great way to save for retirement and use tax savings to help pay for it. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa