Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA |
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You Can Still Make for 2002 Steven Ross and his wife came to their EA on March 12, 2001 to get their taxes done. After Henry finished entering all their data into his computer, the Rosses learned that they owed over $6,000. Just imagine their shock! Yesterday afternoon, Jennifer called and yelled at me because her teenage son owed Several thousand dollars on his tax return. (OK, so she ran over 150 stock trades through Todd's brokerage account in 1999 and his account showed a huge profit - all short-term capital gains.) She was not prepared to pay the huge tax bill. After all, this year, the stock market dropped dramatically since April. Much of the surprise could have been avoided - and some of the taxes reduced dramatically with one or two visits to their favorite Tax Pro. Here are some of the things to discuss with your Tax Pro: First of all, bring your most recent pay stubs, so we can see your year-to-date earnings and withholding - and any other things your company is taking from your paycheck. Bring along any information on stock trades, asset purchases, home sales or refinances or other major transactions you've already completed for the year. If you are in business, bring along a summary of your income and expenses. If you have started a new business, bring along all the start-up information, incorporation documents, partnership agreements, etc. Let us do a quick summary of your year 2002 tax situation. We can easily tell you what you will expect to owe - or how much of a refund to expect. That way, you can either increase your withholding to avoid a large problem in April - OR you can reduce your withholding and use the money now, if you expect a large refund. If you are self-employed, you should be making estimated payments each quarter. The First one was due on January 15, 2002. If you have missed the first three installments, there is nothing to prevent you from making one now. (See: TaxMama's Article). On the other hand, coming in NOW will give you time to do some planning and reduce those taxes. While it is necessary to pay taxes, there is no need to over-pay! |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
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