At tax time, you might wonder if hiring tax experts is really worth it. We’re here to tell you it is, but you don’t have to just take our word for it. We’ll be discussing just six advantages of working with tax professionals to prepare and file your taxes.
Whether you’re a small business owner, someone who just had a life change that will affect your tax status, have rental income, or something else, the experts at Phoenix Tax Consultants will make filing your taxes simple and easy for you.
Reduce Your Risk of Filing Issues
The most cited advantage of working with tax experts is that, well, they’re experts. This means that you’ll greatly reduce your risk of having any mistakes or filing issues.
There’s a variety of software that claims to be able to walk you through how to file your own taxes, even if you’re a small business owner. However, because you’re not a tax expert, you may not know if this software is fully up to date on current tax law. If it’s not, you’ll face some issues when you file your taxes.
Tax laws change often, especially for businesses. Working with professionals will provide you with the peace of mind of knowing that they’re aware of all the latest changes to tax law. They’ll help you avoid serious errors on your tax returns. If your business is ever audited, you’ll know that there aren’t any inconsistencies in your taxes because they’ve been handled by experts.
Save Time
Filing your taxes can be very time-consuming, especially when you choose to take that on yourself, and even more so if you own a small business. This is part of why most people dread tax time.
Successfully filing your taxes yourself, especially for your business, requires significant energy and resources, because you’ll be doing a lot of research.
Hiring tax experts to prepare your taxes for you will allow you to complete and file your taxes in much less time. Choose the efficient option by hiring a tax professional!
Get the Most From Tax Deductions
Even if you’ve been filing your own taxes without mistakes or filing issues, you may not have the knowledge necessary to make the most of your tax deductions. Getting the most out of deductions can be especially tricky for business owners who may not get a tax return.
There are so many different types of deductions that it can be daunting to try to figure out what applies to your business. Fortunately, tax experts have the experience to know exactly what you’re eligible for, and they’re here to help you reduce your tax bill. This also leads us to how tax experts help you save money.
Save Money
You may think that hiring tax professionals will cost you more, but they’ll actually save you money overall.
Tax experts have the knowledge and financial expertise to help you better understand your financial standing. They’ll analyze your situation, find tax-planning opportunities, and help you plan for next year.
This, in addition to maximizing tax deductions, will help you save money on your taxes. These advantages far outweigh the cost of hiring tax professionals to help you get your taxes done right.
Get Expert Advice
Whether you’re trying to grow your business or find ways to save money, advice from tax experts is invaluable. Hiring tax professionals will give you access to their expertise and advice so you can make sure you’re making the best financial decisions for yourself or your business.
Tax consultants are also available year-round, not just during tax season. This means that you can go to them whenever you need advice and they’ll help you make the most strategic financial decision.
Avoid an Audit
Some types of returns are more likely to be audited by the IRS than others, such as those filed by self-employed individuals or small businesses. Fortunately, tax experts are less likely to make mistakes and are more likely to know which deductions you’re eligible for, so you’re less likely to be audited in the first place.
If you do get audited, your tax team will be there to help and defend you throughout the process.
Let the Tax Experts at Phoenix Tax Consultants Do the Hard Work for You!
Taxes can be complicated and stressful, but they don’t have to be.
When you let the tax experts from Phoenix Tax Consultants handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more.
We don’t just process – we plan. At Tax Tacklers, we are disrupting the way people do their taxes. The best part is that with our virtual and in-person filing options, you can do your taxes from anywhere!
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax preparation? Schedule an appointment today!
When it’s time to prepare your tax return, it’ll make your life easier if you’re organized and ready for your tax preparation appointment. Depending on your tax situation, not everything on our list will be relevant to your situation, but it’ll still help you be ready for your appointment. You can also view and download our tax planning checklist to keep with you as you gather everything you’ll need.
Gather Your Personal and Income Information
In order for your tax return to be accurate and free of mistakes, the IRS will need to know who is filing and who your dependents are. For this, you’ll need the following:
Full name and social security numbers for yourself, spouse, and all dependents
Prior Years’ Tax Returns (if not prepared by us)
Child care provider tax ID or Social Security Number and Address (including camps and babysitters)
529 contribution beneficiaries’ social security numbers
You’ll also need to gather income information for both you and your spouse. This will include:
Income from jobs: W-2 forms for all jobs worked during last year
Investment income: 1099 forms (-INT, -DIV, -B, etc.), K-1s, stock option information
Income from state and local tax refunds and/or unemployment: 1099-G forms
Taxable alimony received (applies to divorces finalized before January 1, 2019)
Business or farming income: profit/loss statements, capital equipment information
Home business information (for those who work from home): home size, office size, home expenses, office expenses
IRA/pension distributions: 1099-R forms
Rental property income/expense: profit/loss statement, rental property suspended loss information
Social Security benefits: SSA-1099 forms
Income from sales of property: 1099-C forms – original cost and cost of improvements, escrow closing statement, canceled debt information
Prior year installment sale information: 6252 forms, principal and interest collected throughout the year, SSN, and address of payer
Other miscellaneous income: jury duty, gambling winnings, Medical Savings Account (MSA), scholarships, etc.
Information About Adjustments to Your Income
To possibly reduce the amount of your income that may be taxed, increase your tax refund, and lower the total amount that you owe, you should have the following information:
IRA contributions
Student loan interest
Health Savings Account (HSA) contributions
Self-employed health insurance premium payments
Keogh, SEP, SIMPLE, and other self-employed pension plans
Tax deductible alimony (applies to divorces finalized before January 1, 2019)
Educator expenses
Itemized Deductions and Credits
There are some deductions and credits available from the government to help lower the tax burden placed on individuals and increase your refund. To make the most of all deductions and credits applicable to you, you’ll need the following information:
Child care costs: provider’s name, address, tax id, and amount paid
Education costs: 1098-T forms and education expenses
Adoption costs: SSN of the child, legal, medical, and transportation costs.
Home mortgage interest and points paid: 1098 forms
Investment interest expenses
Charitable donations: cash amounts and value of the donated property, miles driven, and any out-of-pocket expenses
Casualty and theft losses: cost of damage and insurance reimbursements
Unreimbursed employee expenses only apply to tax years prior to 2018 for federal returns but some states may still allow it
Medical and dental expenses
Energy credits
Taxes You’ve Paid
Make sure that you properly document all taxes you’ve already paid to avoid overpaying on these taxes. You’ll need documentation for:
State and local income taxes paid
Real estate taxes paid
Personal property taxes paid
Other Information
Estimated tax payments made during the year, prior year refund applied to the current year, and any amount paid with an extension to file
Direct deposit information: routing and account numbers
Foreign bank account information: location, name of the bank, account number, the peak value of the account during the year
Get Tax Preparation Help From the Experts at Phoenix Tax Consultants
When you let the tax experts from Phoenix Tax Consultants handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more.
We don’t just process – we plan. At Tax Tacklers, we are disrupting the way people do their taxes. The best part is that with our virtual and in-person filing options, you can do your taxes from anywhere!
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax preparation? Schedule an appointment today!
When it comes to getting a tax refund, most of us don’t want to wait around for it. This isn’t surprising, because many households put this money toward necessities or paying down debt. In addition to this, tax refunds aren’t just free money, they’re money that the government owes you for overpaying your taxes throughout the year! Unfortunately, it’s easy to make mistakes that could delay your refund. Keep reading to learn how to avoid these mistakes and how tax consultants can help you get your refund ASAP.
File your refund electronically
Whether you file on your own or with help from a tax consultant, your best option is to file electronically. The IRS estimates that most taxpayers who file electronically receive their refund within 21 days, especially if electronic filing is coupled with direct deposit.
Returns that aren’t filed electronically have to be manually reviewed, which can significantly delay refunds. In 2022, paper returns took up to six months to be reviewed and refunded.
E-filing also helps reduce the number of errors and identifies potential tax credits or deductions. However, you should still take time to review your return and make sure that there are no typos and that all the information included is accurate.
Make sure your routing and account numbers are correct
Direct deposit goes hand-in-hand with e-filing. You need to do both to be able to get your refund as soon as possible. Your refund can even be split across multiple accounts.
That’s why it’s important to make sure that the bank information you’ve provided the IRS with is correct. Incorrect routing numbers can delay a refund or even lead to it being deposited into the wrong account. Processing may also be delayed if the name on the account doesn’t match the name on your return.
Gather all of the appropriate documents
It’s important to make sure that you have all the appropriate documents, like W-2s and 1099s, and any documents that will be sued to support deductions and credits before filing your tax return. It may also be helpful to have the previous year’s tax return.
If you don’t have these documents, you might think that it’s ok to estimate your income or other important numbers, but when it comes to the IRS, you have to be precise. Estimating these numbers could lead you to file a tax return with a number that’s different from what the IRS knows you owe or should be returned. This kind of discrepancy will delay your return and refund for weeks or even longer.
If you’re not sure what documents you’ll need, you can use our tax preparation checklist to make sure you have everything you need.
Use the correct filing status
Filing statuses in the United States include single, married filing jointly, married filing separately, head of household, and qualifying widower with dependent child. The status that you file with will determine your standard deduction, eligibility for tax credits, and overall tax burden. If you file a tax return with the incorrect status, the best-case scenario is that you’ll have to file an amended return, delaying your refund. The worst-case scenario would be that the IRS suspects fraud and investigates.
It’s best to get your status right the first time. Tax consultants will help you make sure that you’re filing status is correct.
Double-check personal information
In addition to your personal information, you need to accurately list the name, date of birth, and social security number of each person you’ve claimed as a dependent on your tax return. The social security number and individual’s name on the tax return need to exactly match what is printed on their social security card.
Take a second look at your return
Double-check your return before filing it. It’s important to check your math, make sure your social security numbers are correct, all names are spelled correctly, and that your return is signed. Even small, common mistakes can delay processing and your refund.
Professional tax consultants can help you avoid these mistakes. They typically have systems in place that will find typos. However, it’s still important to make sure that all names on the return match the spelling on their social security card.
If you were recently married, you’ll also want to ensure that the name on your tax return is the same as what’s on your social security card. You don’t want to use your new last name if your social security doesn’t match yet!
Finally, make sure to sign your return! If you send an unsigned return to the IRS, you might as well not send a return at all, because it will be invalid. It will be returned to you to be signed, and by the time it’s sent back, you’ll have to go through the entire process all over again. Get your refund sooner by making sure there are no mistakes the first time!
Claim the correct dependents
A common issue that delays return processing and refunds are claiming dependents who have already filed their own return and claimed themselves as an exemption. This commonly happens in families with older kids, usually in college. The best way to avoid mistakes like these is to coordinate with your kids ahead of time. If you don’t coordinate beforehand, and your child files their return before you, your return will be rejected.
Let the Phoenix Tax Consultants help you get your refund ASAP
This is a lot to have to keep in mind when you’re just trying to figure out how much you owe or should be refunded. Make it simple by letting Phoenix Tax Consultants do the hard work! We’ll make sure that your tax return is error-free so you can get your refund as soon as possible.
When you let an expert tax consultant from the Phoenix Tax Consultants team handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more.
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax preparation? Schedule an appointment today!
In 2022, many Americans got a substantial tax refund, but it seems that in 2023, the average refund is about 11% lower than last year. According to IRS data, typical refunds in 2022 were around $3,473, while this year most refunds are $3,079. This could be difficult for Americans dealing with the effects of inflation, especially when so many rely on refunds to help them make financial ends meet. In this article, we’ll be discussing the reason why refunds are somewhat smaller so you can be prepared and you’ll also find out how you can boost your refund next year with the help of an expert tax advisor!
Why were last year’s refunds larger?
In 2022, refunds were generally larger than they had been previously due to pandemic-related policies like the expanded child tax credit and stimulus check payments. Those who had not received them throughout the year had the opportunity to receive them through their tax refunds, making them larger than usual.
Of course, because taxpayers will not be getting these stimulus payments or the expanded child tax credit this year, refunds will be noticeably smaller. The child tax credit allowed families to claim up to $3,600 per child on their 2021 tax returns. This year, that’s back down to $2,000 per child.
There’s still good news, though: although refunds are somewhat smaller this year, more taxpayers are getting refunds rather than owing money.
Keep in mind that the amount of money you’ll be refunded depends on how much you overpaid in taxes during the 2022 calendar year. Whether or not you overpay in taxes is based on a variety of factors, including the amount that you choose to have withheld from your paychecks, whether or not you’re eligible for tax credits, and the number of deductions you can claim.
If you earned more income, increased your withholding, had a change in filing status, or became eligible for credits you weren’t previously eligible for, your tax refund could potentially increase.
How a tax advisor can help you boost next year’s refund
By taking some time to work with a tax advisor and plan ahead for next year, you could get a little more money back next year, or at the very least take steps to avoid owing money. A tax advisor, like one of the tax experts from Phoenix Tax Consultants, can work with you to make sure that you’re claiming all credits and deductions that you’re eligible for. We can also provide you with advice about how your retirement plan can help you reduce your taxable income so you can increase the size of your refund.
Phoenix Tax Consultants is committed to providing tax minimization recommendations and high-quality customer service for each and every client for a fair price that reflects the value we add to their tax preparation process. We are not a chain tax resource. We have a dedicated team of CPAs, Enrolled Agents, and experienced preparers available year-round to meet our client’s tax preparation and planning needs.
When you let us handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also offer virtual and in-person filing options, so filing your taxes is always convenient and easy for you. With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax needs? Schedule an appointment today!
Here at Phoenix Tax Consultants, we believe that the earlier you file your taxes, the better. However, do certain situations ever warrant waiting to file your taxes? In this article, we’ll explain the best time to file your tax return depending on your situation, and if it’s ever a good idea to wait. With these tips, and tax consulting help from our team, you’ll get your taxes filed quickly, accurately, and on time!
Get your refund as soon as possible
If you know you’ll be getting a refund, the best time to file is as soon as you have all of the paperwork you need to file. Just avoid filing a paper return if you want your refund sooner rather than later. Paper returns can take up to eight weeks to process, so you’ll have to wait up to two months before you can get your refund. However, electronically filed returns typically get processed in as little as 21 days!
If you’re really interested in speeding up the process, we recommend choosing direct deposit as well. Otherwise, even though your return was processed quickly, you’ll be waiting for your refund check to make its way to your mailbox.
Your tax situation is uncomplicated
Although taxes are never really simple, some people have less complicated situations than others. If this is the case for you, there’s no reason for you to wait to file once you have all the necessary documents. You won’t have a larger refund or a change in your return simply because you wait to file, so why procrastinate?
Even if you know you’ll owe money, you should file as soon as you can. Filing before the deadline doesn’t mean that you have to pay before the deadline. Filing early will let you know how much you need to pay so you can prepare to pay by the deadline instead of being surprised by how much you owe just a week before Tax Day because you waited to file.
Prevent identity theft
As we mentioned in our previous blog, identity theft is an unfortunately common issue for taxpayers who will be getting refunds. If you want to do your best to stop a thief from claiming your refund before you can, file as soon as you can. Thieves usually file returns in late January because most people don’t file until long after that. Of course, you can’t file without all the proper documentation, but once you have everything, don’t wait! Once you’ve filed your return, any other returns filed in your name will be rejected by the IRS, successfully preventing attempts at theft.
Avoid late penalties
If your tax return doesn’t get to the IRS until after the April deadline, you’ll get a late-filing penalty that could be as much as 5% of your taxes due for every month or partial month that your return was late, with a maximum of 25%. If for some reason you won’t make the deadline, make sure to plan ahead and request an extension before the deadline.
Something important to remember is that a filing extension does not mean that you’ll get an extension for paying what you owe. Even with an extension, you may owe interest in addition to a late payment penalty. Late payment penalties are usually 0.5% of the amount owed for each month the payment is late up to a maximum of 25%.
Filing early will avoid any penalties while allowing you to take time to plan and budget for any taxes you owe.
You don’t have all your documents
Something we’ve mentioned in each of these sections is that you should file as soon as you have all the necessary documents. In addition to this, you need to verify that all the information included in these documents is accurate.
Most of the time, the documents you receive will be accurate, but mistakes aren’t unheard of, so it’s important to check your documents once you receive them. If a mistake is made and you are sent updated paperwork after you’ve filed your tax return, you’ll have to file an amendment, which can prolong processing time.
Although earlier is better once you’ve gotten all of your documents, it’s important to postpone filing if you find a mistake or are waiting on a document.
Your tax return will be complicated
Waiting to file your tax return may be a good idea if your tax situation is complex. However, you may still want to being the process of filing early, just take some time to review your return before filing. Taking this extra time to review your return will allow you to make necessary adjustments or fix mistakes to avoid filing an amendment. Sometimes taking extra time to correctly prepare your return is the best plan of action.
Need help with taxes? Get tax consulting from Phoenix Tax Consultants!
As you can see, there aren’t very many situations in which waiting to file your taxes is a good idea. In most cases, you’ll get the most benefit from filing as early as you can. However, if you need help filing your taxes on time, get tax consulting help right here at Phoenix Tax Consultants.
When you let us handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more. We also offer virtual and in-person filing options, so filing your taxes is always convenient and easy for you.
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax needs? Schedule an appointment today!
Phoenix Tax Consultants LLC has over 30 years of local tax preparation, tax planning, and audit experience. Don't trust your return to anyone, go with the experts!
Last Updated: April 14, 2023 by Tax Tacklers · Leave a Comment
6 Advantages of Working With Tax Experts to Prepare Your Taxes
At tax time, you might wonder if hiring tax experts is really worth it. We’re here to tell you it is, but you don’t have to just take our word for it. We’ll be discussing just six advantages of working with tax professionals to prepare and file your taxes.
Whether you’re a small business owner, someone who just had a life change that will affect your tax status, have rental income, or something else, the experts at Phoenix Tax Consultants will make filing your taxes simple and easy for you.
Reduce Your Risk of Filing Issues
The most cited advantage of working with tax experts is that, well, they’re experts. This means that you’ll greatly reduce your risk of having any mistakes or filing issues.
There’s a variety of software that claims to be able to walk you through how to file your own taxes, even if you’re a small business owner. However, because you’re not a tax expert, you may not know if this software is fully up to date on current tax law. If it’s not, you’ll face some issues when you file your taxes.
Tax laws change often, especially for businesses. Working with professionals will provide you with the peace of mind of knowing that they’re aware of all the latest changes to tax law. They’ll help you avoid serious errors on your tax returns. If your business is ever audited, you’ll know that there aren’t any inconsistencies in your taxes because they’ve been handled by experts.
Save Time
Filing your taxes can be very time-consuming, especially when you choose to take that on yourself, and even more so if you own a small business. This is part of why most people dread tax time.
Successfully filing your taxes yourself, especially for your business, requires significant energy and resources, because you’ll be doing a lot of research.
Hiring tax experts to prepare your taxes for you will allow you to complete and file your taxes in much less time. Choose the efficient option by hiring a tax professional!
Get the Most From Tax Deductions
Even if you’ve been filing your own taxes without mistakes or filing issues, you may not have the knowledge necessary to make the most of your tax deductions. Getting the most out of deductions can be especially tricky for business owners who may not get a tax return.
There are so many different types of deductions that it can be daunting to try to figure out what applies to your business. Fortunately, tax experts have the experience to know exactly what you’re eligible for, and they’re here to help you reduce your tax bill. This also leads us to how tax experts help you save money.
Save Money
You may think that hiring tax professionals will cost you more, but they’ll actually save you money overall.
Tax experts have the knowledge and financial expertise to help you better understand your financial standing. They’ll analyze your situation, find tax-planning opportunities, and help you plan for next year.
This, in addition to maximizing tax deductions, will help you save money on your taxes. These advantages far outweigh the cost of hiring tax professionals to help you get your taxes done right.
Get Expert Advice
Whether you’re trying to grow your business or find ways to save money, advice from tax experts is invaluable. Hiring tax professionals will give you access to their expertise and advice so you can make sure you’re making the best financial decisions for yourself or your business.
Tax consultants are also available year-round, not just during tax season. This means that you can go to them whenever you need advice and they’ll help you make the most strategic financial decision.
Avoid an Audit
Some types of returns are more likely to be audited by the IRS than others, such as those filed by self-employed individuals or small businesses. Fortunately, tax experts are less likely to make mistakes and are more likely to know which deductions you’re eligible for, so you’re less likely to be audited in the first place.
If you do get audited, your tax team will be there to help and defend you throughout the process.
Let the Tax Experts at Phoenix Tax Consultants Do the Hard Work for You!
Taxes can be complicated and stressful, but they don’t have to be.
When you let the tax experts from Phoenix Tax Consultants handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more.
We don’t just process – we plan. At Tax Tacklers, we are disrupting the way people do their taxes. The best part is that with our virtual and in-person filing options, you can do your taxes from anywhere!
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax preparation? Schedule an appointment today!
Last Updated: April 14, 2023 by Tax Tacklers · Leave a Comment
Tax Preparation Tips: What You Should Know Before Preparing Your Taxes
When it’s time to prepare your tax return, it’ll make your life easier if you’re organized and ready for your tax preparation appointment. Depending on your tax situation, not everything on our list will be relevant to your situation, but it’ll still help you be ready for your appointment. You can also view and download our tax planning checklist to keep with you as you gather everything you’ll need.
Gather Your Personal and Income Information
In order for your tax return to be accurate and free of mistakes, the IRS will need to know who is filing and who your dependents are. For this, you’ll need the following:
You’ll also need to gather income information for both you and your spouse. This will include:
Information About Adjustments to Your Income
To possibly reduce the amount of your income that may be taxed, increase your tax refund, and lower the total amount that you owe, you should have the following information:
Itemized Deductions and Credits
There are some deductions and credits available from the government to help lower the tax burden placed on individuals and increase your refund. To make the most of all deductions and credits applicable to you, you’ll need the following information:
Taxes You’ve Paid
Make sure that you properly document all taxes you’ve already paid to avoid overpaying on these taxes. You’ll need documentation for:
Other Information
Get Tax Preparation Help From the Experts at Phoenix Tax Consultants
When you let the tax experts from Phoenix Tax Consultants handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more.
We don’t just process – we plan. At Tax Tacklers, we are disrupting the way people do their taxes. The best part is that with our virtual and in-person filing options, you can do your taxes from anywhere!
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax preparation? Schedule an appointment today!
Last Updated: April 4, 2023 by Tax Tacklers · Leave a Comment
How Tax Consultants Can Help You Avoid Processing Delays to Get Your Refund ASAP
When it comes to getting a tax refund, most of us don’t want to wait around for it. This isn’t surprising, because many households put this money toward necessities or paying down debt. In addition to this, tax refunds aren’t just free money, they’re money that the government owes you for overpaying your taxes throughout the year! Unfortunately, it’s easy to make mistakes that could delay your refund. Keep reading to learn how to avoid these mistakes and how tax consultants can help you get your refund ASAP.
File your refund electronically
Whether you file on your own or with help from a tax consultant, your best option is to file electronically. The IRS estimates that most taxpayers who file electronically receive their refund within 21 days, especially if electronic filing is coupled with direct deposit.
Returns that aren’t filed electronically have to be manually reviewed, which can significantly delay refunds. In 2022, paper returns took up to six months to be reviewed and refunded.
E-filing also helps reduce the number of errors and identifies potential tax credits or deductions. However, you should still take time to review your return and make sure that there are no typos and that all the information included is accurate.
Make sure your routing and account numbers are correct
Direct deposit goes hand-in-hand with e-filing. You need to do both to be able to get your refund as soon as possible. Your refund can even be split across multiple accounts.
That’s why it’s important to make sure that the bank information you’ve provided the IRS with is correct. Incorrect routing numbers can delay a refund or even lead to it being deposited into the wrong account. Processing may also be delayed if the name on the account doesn’t match the name on your return.
Gather all of the appropriate documents
It’s important to make sure that you have all the appropriate documents, like W-2s and 1099s, and any documents that will be sued to support deductions and credits before filing your tax return. It may also be helpful to have the previous year’s tax return.
If you don’t have these documents, you might think that it’s ok to estimate your income or other important numbers, but when it comes to the IRS, you have to be precise. Estimating these numbers could lead you to file a tax return with a number that’s different from what the IRS knows you owe or should be returned. This kind of discrepancy will delay your return and refund for weeks or even longer.
If you’re not sure what documents you’ll need, you can use our tax preparation checklist to make sure you have everything you need.
Use the correct filing status
Filing statuses in the United States include single, married filing jointly, married filing separately, head of household, and qualifying widower with dependent child. The status that you file with will determine your standard deduction, eligibility for tax credits, and overall tax burden. If you file a tax return with the incorrect status, the best-case scenario is that you’ll have to file an amended return, delaying your refund. The worst-case scenario would be that the IRS suspects fraud and investigates.
It’s best to get your status right the first time. Tax consultants will help you make sure that you’re filing status is correct.
Double-check personal information
In addition to your personal information, you need to accurately list the name, date of birth, and social security number of each person you’ve claimed as a dependent on your tax return. The social security number and individual’s name on the tax return need to exactly match what is printed on their social security card.
Take a second look at your return
Double-check your return before filing it. It’s important to check your math, make sure your social security numbers are correct, all names are spelled correctly, and that your return is signed. Even small, common mistakes can delay processing and your refund.
Professional tax consultants can help you avoid these mistakes. They typically have systems in place that will find typos. However, it’s still important to make sure that all names on the return match the spelling on their social security card.
If you were recently married, you’ll also want to ensure that the name on your tax return is the same as what’s on your social security card. You don’t want to use your new last name if your social security doesn’t match yet!
Finally, make sure to sign your return! If you send an unsigned return to the IRS, you might as well not send a return at all, because it will be invalid. It will be returned to you to be signed, and by the time it’s sent back, you’ll have to go through the entire process all over again. Get your refund sooner by making sure there are no mistakes the first time!
Claim the correct dependents
A common issue that delays return processing and refunds are claiming dependents who have already filed their own return and claimed themselves as an exemption. This commonly happens in families with older kids, usually in college. The best way to avoid mistakes like these is to coordinate with your kids ahead of time. If you don’t coordinate beforehand, and your child files their return before you, your return will be rejected.
Let the Phoenix Tax Consultants help you get your refund ASAP
This is a lot to have to keep in mind when you’re just trying to figure out how much you owe or should be refunded. Make it simple by letting Phoenix Tax Consultants do the hard work! We’ll make sure that your tax return is error-free so you can get your refund as soon as possible.
When you let an expert tax consultant from the Phoenix Tax Consultants team handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more.
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax preparation? Schedule an appointment today!
Last Updated: April 4, 2023 by Tax Consultant · Leave a Comment
Why This Year’s Refund Might Not Be What You’re Expecting
In 2022, many Americans got a substantial tax refund, but it seems that in 2023, the average refund is about 11% lower than last year. According to IRS data, typical refunds in 2022 were around $3,473, while this year most refunds are $3,079. This could be difficult for Americans dealing with the effects of inflation, especially when so many rely on refunds to help them make financial ends meet. In this article, we’ll be discussing the reason why refunds are somewhat smaller so you can be prepared and you’ll also find out how you can boost your refund next year with the help of an expert tax advisor!
Why were last year’s refunds larger?
In 2022, refunds were generally larger than they had been previously due to pandemic-related policies like the expanded child tax credit and stimulus check payments. Those who had not received them throughout the year had the opportunity to receive them through their tax refunds, making them larger than usual.
Of course, because taxpayers will not be getting these stimulus payments or the expanded child tax credit this year, refunds will be noticeably smaller. The child tax credit allowed families to claim up to $3,600 per child on their 2021 tax returns. This year, that’s back down to $2,000 per child.
There’s still good news, though: although refunds are somewhat smaller this year, more taxpayers are getting refunds rather than owing money.
Keep in mind that the amount of money you’ll be refunded depends on how much you overpaid in taxes during the 2022 calendar year. Whether or not you overpay in taxes is based on a variety of factors, including the amount that you choose to have withheld from your paychecks, whether or not you’re eligible for tax credits, and the number of deductions you can claim.
If you earned more income, increased your withholding, had a change in filing status, or became eligible for credits you weren’t previously eligible for, your tax refund could potentially increase.
How a tax advisor can help you boost next year’s refund
By taking some time to work with a tax advisor and plan ahead for next year, you could get a little more money back next year, or at the very least take steps to avoid owing money. A tax advisor, like one of the tax experts from Phoenix Tax Consultants, can work with you to make sure that you’re claiming all credits and deductions that you’re eligible for. We can also provide you with advice about how your retirement plan can help you reduce your taxable income so you can increase the size of your refund.
Phoenix Tax Consultants is committed to providing tax minimization recommendations and high-quality customer service for each and every client for a fair price that reflects the value we add to their tax preparation process. We are not a chain tax resource. We have a dedicated team of CPAs, Enrolled Agents, and experienced preparers available year-round to meet our client’s tax preparation and planning needs.
When you let us handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also offer virtual and in-person filing options, so filing your taxes is always convenient and easy for you. With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax needs? Schedule an appointment today!
Last Updated: February 24, 2023 by Tax Tacklers · Leave a Comment
When is the Best Time to File My Tax Return?
Here at Phoenix Tax Consultants, we believe that the earlier you file your taxes, the better. However, do certain situations ever warrant waiting to file your taxes? In this article, we’ll explain the best time to file your tax return depending on your situation, and if it’s ever a good idea to wait. With these tips, and tax consulting help from our team, you’ll get your taxes filed quickly, accurately, and on time!
Get your refund as soon as possible
If you know you’ll be getting a refund, the best time to file is as soon as you have all of the paperwork you need to file. Just avoid filing a paper return if you want your refund sooner rather than later. Paper returns can take up to eight weeks to process, so you’ll have to wait up to two months before you can get your refund. However, electronically filed returns typically get processed in as little as 21 days!
If you’re really interested in speeding up the process, we recommend choosing direct deposit as well. Otherwise, even though your return was processed quickly, you’ll be waiting for your refund check to make its way to your mailbox.
Your tax situation is uncomplicated
Although taxes are never really simple, some people have less complicated situations than others. If this is the case for you, there’s no reason for you to wait to file once you have all the necessary documents. You won’t have a larger refund or a change in your return simply because you wait to file, so why procrastinate?
Even if you know you’ll owe money, you should file as soon as you can. Filing before the deadline doesn’t mean that you have to pay before the deadline. Filing early will let you know how much you need to pay so you can prepare to pay by the deadline instead of being surprised by how much you owe just a week before Tax Day because you waited to file.
Prevent identity theft
As we mentioned in our previous blog, identity theft is an unfortunately common issue for taxpayers who will be getting refunds. If you want to do your best to stop a thief from claiming your refund before you can, file as soon as you can. Thieves usually file returns in late January because most people don’t file until long after that. Of course, you can’t file without all the proper documentation, but once you have everything, don’t wait! Once you’ve filed your return, any other returns filed in your name will be rejected by the IRS, successfully preventing attempts at theft.
Avoid late penalties
If your tax return doesn’t get to the IRS until after the April deadline, you’ll get a late-filing penalty that could be as much as 5% of your taxes due for every month or partial month that your return was late, with a maximum of 25%. If for some reason you won’t make the deadline, make sure to plan ahead and request an extension before the deadline.
Something important to remember is that a filing extension does not mean that you’ll get an extension for paying what you owe. Even with an extension, you may owe interest in addition to a late payment penalty. Late payment penalties are usually 0.5% of the amount owed for each month the payment is late up to a maximum of 25%.
Filing early will avoid any penalties while allowing you to take time to plan and budget for any taxes you owe.
You don’t have all your documents
Something we’ve mentioned in each of these sections is that you should file as soon as you have all the necessary documents. In addition to this, you need to verify that all the information included in these documents is accurate.
Most of the time, the documents you receive will be accurate, but mistakes aren’t unheard of, so it’s important to check your documents once you receive them. If a mistake is made and you are sent updated paperwork after you’ve filed your tax return, you’ll have to file an amendment, which can prolong processing time.
Although earlier is better once you’ve gotten all of your documents, it’s important to postpone filing if you find a mistake or are waiting on a document.
Your tax return will be complicated
Waiting to file your tax return may be a good idea if your tax situation is complex. However, you may still want to being the process of filing early, just take some time to review your return before filing. Taking this extra time to review your return will allow you to make necessary adjustments or fix mistakes to avoid filing an amendment. Sometimes taking extra time to correctly prepare your return is the best plan of action.
Need help with taxes? Get tax consulting from Phoenix Tax Consultants!
As you can see, there aren’t very many situations in which waiting to file your taxes is a good idea. In most cases, you’ll get the most benefit from filing as early as you can. However, if you need help filing your taxes on time, get tax consulting help right here at Phoenix Tax Consultants.
When you let us handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more. We also offer virtual and in-person filing options, so filing your taxes is always convenient and easy for you.
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax needs? Schedule an appointment today!
Phoenix Tax Consultants
Phoenix Tax Consultants LLC has over 30 years of local tax preparation, tax planning, and audit experience. Don't trust your return to anyone, go with the experts!
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