Now that Tax Day has come and gone, consider this advice from our NYC CPA. Taking the steps below could save you time, effort and money on your taxes next year:
- Check your return status. Make sure that your return has been accepted by the IRS (no need to worry about this if our firm filed your return for you). Be sure to print off your confirmation and a copy of the return so you have them for easy reference next year.
- Correct any errors if your return was rejected. If your return is rejected, there could be a simple explanation such as an incorrect name, Social Security number, date of birth or error in an amount of previous year income. If your return is rejected, simply correct your mistake and resubmit it. If you made a mistake but your return wasn’t rejected you should consider filing an amended return
- Pay any tax that you owe. If you had a tax bill this year, make sure you take care of it. Remember, owing taxes is not a bad thing, although you may want to check to make sure your withholding amounts are adequate so you don’t end up with a surprise bill next year.
- Check your IRS refund status. If you are expecting a refund, you can check its status by using the “Where’s My Refund?” tool at IRS.gov. Keep in mind that the IRS only updates the site once every 24 hours for e-filed returns. If you filed a paper return, allow four weeks before checking on the status.
- Make a file for your records. The IRS has up to three years to verify that all the information on your return was correct. If you get audited, you will need to provide back up to prove the accuracy of the information you provided. Keep your documents in a clearly labeled file so they are at hand if needed.
- Save or spend your refund wisely. Treating yourself with a small portion of a tax refund is okay, but be sure to look at how you might be able to use your refund to invest for the long term in things such as home improvements and saving for retirement or college.
By taking a little bit of time now to organize your tax information, you will be in a better position next year to hit the ground running and make your tax filing process easier. If you have any questions, contact our New York City CPA.