Are you stressed about tax time? Does the thought of doing your taxes give you a headache?  Tax preparation doesn’t have to be painful, if you follow some basic tips.

1. Don’t put off doing your taxes until the last minute. When you rush, you are more likely to make mistakes. You may even make mistakes that could cost you money.  So start them now if you haven’t already.

2. Use the IRS website. There were more than 300 million visits to www.irs.gov last year. Go to the “1040 Central” to check for the latest news and find answers to your questions about tax filing.

3. Use Free File. Free File is available exclusively at www.irs.gov. Everyone can find an option to prepare their tax return and e-file it for free. If you made $57,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. If you made more than $57,000 and/or are comfortable preparing your own tax return, there’s Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile for options.

4. Try IRS e-file. The majority of taxpayers now use IRS e-file, which is the safest, easiest and most common way to file a tax return. If you owe taxes, you can file immediately and pay later (by the April 17 tax deadline). Best of all, when you combine e-file with direct deposit  the IRS can generally issue your refund in as few as 10 days.

5. Don’t put off filing your taxes if you can’t pay. If you can’t pay the full amount of taxes you owe by the mid-April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. More than 75 percent of taxpayers eligible for an Installment Agreement can apply using the web-based Online Payment Agreement application available at www.irs.gov. To find out more about this simple and convenient process, type “Online Payment Agreement” in the search box at www.irs.gov.  You can also contact the IRS to discuss your payment options.

6. Request an extension of time to file – but pay on time. If the deadline clock is ticking, you can get an automatic six-month extension through Oct. 15. However, this extension of time to file, which must be filed or postmarked by the April 17 deadline, does not give you more time to pay any taxes due. If you have not paid at least 90 percent of the total tax due by the April deadline you may also be subject to an estimated tax penalty. You can obtain an extension through Free File at www.irs.gov/freefile. Or, file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, available for downloading at www.irs.gov or by calling 800-TAX-FORM (800-829-3676) to have a paper form mailed to you. Allow at least 10 days for mailed forms and publications.

Daniel Stoica Accounting Professional

Although the upcoming holidays may be the biggest stress you’re thinking about right now, you can greatly reduce your holiday AND tax stress by getting organized and keeping good records.

Here are some tips to get you organized for tax time (and some are good tips for the holiday season as well).

Individual taxpayers should usually keep the following records that support their tax returns for at least three years:

• Bills
• Invoices
• Credit card and other receipts
• Mileage logs
• Canceled, imaged or substitute checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return
• Stocks and other investments
• Individual Retirement Arrangement transactions

Generally speaking, keep records relating to properties until at least three years after you sell or otherwise dispose of the property.

• A home purchase or improvement
• Rental property records

If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid.  Examples of important documents business owners should keep Include:

• Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
• Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
• Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
• Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks

Daniel Stoica Accounting Professional

Americans who serve in the military have specific and unique job expenses and changes. There are tax benefits that could apply when a member of the service moves from one base to another, when they are sent to a new duty station, or when they return from active duty. Here are some tax tips for military personnel.

1. Moving Expenses: As a member of the military on active duty, you are allowed to deduct any un-reimbursed moving expenses for your household and yourself.
2. Combat Pay: If you are serving in combat as an enlisted soldier or warrant officer for any amount of time during a month, the pay you get for your service you get for that month is not subject to taxes. If you are an officer, the exclusion is capped at the highest enlisted pay and any “hostile fire” or “imminent danger” pay.
3. Extension of Deadlines: Any time for dealing with special tax matters are postponed. The deadline is extended to file returns, pay your taxes, file claims for refunds, and any other matters with the IRS if you are a qualifying member of the military.
4. Uniform Cost and Upkeep: If you are prohibited from wearing certain uniforms when you are off-duty, your costs for those uniforms can be deducted, however, you have to lower your expenses by any reimbursement you get.
5. Joint Returns: Joint returns must be signed by both spouses with typical tax returns, but if you are in the military, you may not be able to sign due to active duty. In this case, you may have a power of attorney sign for you.
6. Travel to Reserve Duty: If you are in the reserves, you can deduct any un-reimbursed travel expenses if your duty is more than 100 miles from home.
7. ROTC Students: ROTC students who are in advanced training are not taxed for subsistence allowances. Active duty pay, like pay from summer advanced camp, are taxed.
8. Transitioning Back to Civilian Life: It is possible that you will be able to deduct the cost of looking for a new job. These expenses could be for travel, resume preparation, and employment agency fees. You may also be able to deduct moving expenses if moving is related to your new employment and you meet the requirements.
9. Tax Help: Many military bases provide tax filing assistance at no cost during tax season.

For more IRS tax information, look for Publication 3, Armed Forces’ Tax Guide. It will help you with military-related information. You can download the publication at www.irs.gov or you can order a copy by calling 800-829-3676.

For questions about any of these tips, contact a qualified tax professional.

Daniel Stoica Accounting Professional