Five Things To Do Before Christmas for a Merry 2019 Tax Season

1. December 31st is the most important day in the calendar

This is the date on which the IRS “closes and resets.” So, anything you should do to avoid paying in excess or to receive a significant tax-return, it has to be done before the end of the year. “By January/February would be too late,” warns Kenneth.

2. Make sure you have all the necessary documents

If you work for an employer, most likely they are either going to give you a W2 or a 1099. You will also need your ID, your SSN, a prior-year tax return, and any information on your dependents. “Do not forget to bring those dependents’ IDs or birth certificates and SSNs,” he reminds.

3. Keep track of your earning and expenses

You must pay special attention to your earnings if you are an independent contractor, plumber, or a handyman, someone that works for him or herself. “When you are able to provide that documentation we can help you draft your accounting then prepare your tax return.”

4. Understand the difference between personal and business tax

Personal tax is what you should pay in taxes over the income you received as a person. Your business is a legal entity on its own. So, even if a company is solely owned and run by you, the IRS considers it a separate legal entity.

5. “There is no ‘little tax question’”

Codes and regulations change all the time, and they depend significantly on individual circumstances.

“So I would say it is taxpayer specific,” Kenneth explains, which is why his main advice is to always seek help from professionals.

In sum, do your due diligence, file your taxes on time, provide as much backup documentation as you can, and always work with a certified CPA. Remember that it might take up to 21 business days to get a refund. In some cases, it takes even longer if the IRS decides to audit your claim.