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Cover the Basics to Ensure a Good Tax Return

Yes, it’s that time of year again! For some of you, tax season is a good thing and for others, it’s one you dread. Filing your 2012 tax return can leave a lot of unanswered questions, leaving you fearful of an audit. But whether you’re filing personal or for your business, there are a few basics to keep in mind:

–        Don’t Be Tardy: By filing and paying your taxes on time, you will avoid late fees and be at less chance of getting audited. Tardiness is a red flag to the government.

–        Too Much Return Could Be A Bad Thing: If you receive a big refund each year, you’re having too much money withheld from your paycheck. This is similar to giving the government an interest-free loan.

–        Determine Your Tax Bracket: Your tax bracket is the percent at which the highest portion of your income is taxed. By knowing this, you can save money, investing in things that ensure a high return.

–        Understand Tax Documents And Their Purpose:

  • W-2 Forms- reports how much money you made at your job and how much tax you paid for the year.
  • 1099-G- reports unemployment compensation or state tax refunds.
  • 1099-R- reports retirement-plan income.
  • 1099-MISC- reports income if you’re an independent contractor, collected rent, or received royalties.
  • Other 1099s, such as the 1099-B, 1099-DIV, and 1099-INT- report income from financial transactions.

With over 40 years of experience in the insurance and financial services business, we can teach you methods that may help minimize taxes now and in the future. Please contact me at dmcmurryiic@msn.com for more information or visit my website: http://www.integratedinsuranceconcepts.com/index.html.

By Doug McMurry, Owner of Integrated Insurance Concepts in Arizona

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