Tax season is upon us with tax forms arriving in inboxes and mailboxes. Tackling your 2016 tax return may be a dreaded chore (because of complexity or the prospect of owing additional tax) or a welcome event (because you are due a refund). Either way, getting started early may help make your tax-filing season less stressful and potentially save you some money.
Beginning your tax preparation now may help you avoid surprises, give you more time to gather your documents, reduce your taxable income, and even protect you from identity theft.
Filing your tax return as soon as possible is one of the best ways to guard against becoming a victim of tax-related identity theft. For the scheme to be successful, a criminal files a fraudulent return and collects a refund in your name before you do. If you file your legitimate return before a crook tried to file one for you, the fraudulent return is rejected.
If you haven’t received the necessary tax documents from an employer, financial institution, charity, or some other source, be proactive and ask for them. On the other hand, if you owe a payment with your return and you need time to raise the money, you can file your return early and instruct the Internal Revenue Service to deduct the amount from your bank account or debit card, or charge your credit card, at any time right up until the filing deadline. (The deadline is April 18, 2017, for your 2016 taxes because of a District of Columbia holiday.)
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101