At Atlas Accounting, we know that filing your taxes can be a hassle. Depending on your situation, an individual tax filing can range from a simple 1040EZ to a complicated multi-page filing with a variety of schedules. When your return is more complex, you might find it’s worth hiring a professional — someone who can save you not only time and stress but also money.
Whether you own a small business, operate a side hustle, have kids that go to college or have retirement savings, these can all affect the complexity and filing requirements for your yearly taxes. While these things may sound like an open invitation for the IRS to raise your taxes, more often than not, our professionals at Atlas Accounting can help you reduce your tax liability and maximize your total refund.
Our team has complied a list of the most common mistakes and often ignored items that may have an effect on your yearly taxes:
1. YOU OWN A BUSINESS OR OPERATE A SIDE HUSTLE
If you own your own small business, there are many tax write-offs that can reduce your total tax liability. Our professionals at Atlas Accounting have the expertise to help you navigate them.
Likewise, if you’re doing significant work in the gig economy (driving Uber, selling products on Etsy, etc.), it is wise to have a professional review your taxes to ensure that the regulations are followed and the appropriate documentation filed.
2. IRS LETTER
Even if the IRS reaches out asking for something as simple (such as an explanation behind certain deductions), we recommend hiring one of our professionals for a closer look. While it could be a seemingly benign, if handle incorrectly, it may trigger an audit of your entire tax return. You don’t, after all, want to give the IRS the incorrect or irrelevant information.
3. YOU HAVE KIDS IN COLLEGE
If you have a child heading to college and you’re planning on filling out the Free Application for Federal Student Aid (FAFSA), a member of our team can assist you with generating the correct income numbers necessary to maximize your aid. You want to make sure you don’t have unwanted income or assets in your child’s name, which can reduce the total amount aid disbursed.
Additionally, a member of our team can help you and your family navigate the potential tax savings and deductions that you can take if you child is just starting their college journey.
4. YOU OWN RENTAL PROPERTY
A return on a real estate investment can get tricky, and our professionals can help you figure out what kinds of deductions you may be entitled to.
At minimum, we recommend that new investors of rental property seek professional accounting and tax advice during the first few years to avoid costly and time-consuming errors in the future.
5. YOU’RE SELF-DIRECTING YOUR RETIREMENT
Your IRA or 401K doesn’t have to be limited to traditional investments in stocks, bonds and mutual funds. You can also use alternative retirement vehicles to invest in things like real estate or precious metals. These retirement fund are known as “self-directed” retirements.
Filing your return on these investments can get complicated very quickly, and we recommend that you seek advice from a member of our team before you decide to even begin a self-directed retirement.
In any case, the professionals at Atlas Accounting are here to help you through every step of the way. Regardless of your tax history, income or filing status, we can help you find a solution to mitigate your taxes and maximize your refund. Contact a dedicated member of our team today for a free consultation.