Filing taxes is not a task for the faint of heart. There are multiple forms, there are a lot of questions about these forms, and there’s a lot of room for error. All it takes is one wrong number in one wrong column, and you go from receiving a refund to owing money. Outside of filing your taxes incorrectly, there are a myriad of other issues that can come with taxes. Whether filing your federal, state, or income tax in MA, always use a reliable tax specialist to avoid any problems. Here are three of the most significant tax issues Americans face each year:
Gross income is a term that many people misinterpret. After all, a lot of phrases dealing with taxes surround the word income. Your gross income is all the money that you’ve made throughout the year before any deductions are made. Your gross income isn’t just your salary. There are other forms of payment that can contribute to your income including interest, dividends, alimony and settlement proceedings. Understanding your gross income is the first step in avoiding tax issues.
Business expenses are a huge factor in filing taxes for a small business owner. The best strategy to avoid issues surrounding trade and business expenses is to keep accurate and relevant files. The next step in reporting business expenses is to understand what qualifies. For example, a night out for dinner and a movie does not count as a business expense. Your flight from your place of business to a hotel for a conference does count as a business expense. For any questions about what constitutes a business expense that can affect your income tax in MA, talk to your tax specialist right away.
Failure to File
There is a reason the beginning of each year is referred to as “tax season.” Every year taxes have a deadline by which they have to be filed. Filing late or failure to file at all can result in fees and/or potential jail time. The same goes for payments. If you’ve filed and were informed you owe the IRS, there is a specific window in by which you have to make that payment. Don’t take a chance of missing the deadlines. Keep in touch with your tax specialist.
There are so many fine details when it comes to filing your taxes. Make sure none of these details are overlooked when it comes to your income tax in MA. So talk to the professionals at abc Payroll. Contact them at 978.251.3003 or visit them online today!