Tyler Talks: Tax Time

Posted by on March 19, 2013

tyler

It’s that time of year again!  If we are lucky enough to be part of the 77% of taxpayers that receive annual refunds, this is a happy time of year.  If our refund is anywhere near the average 2010 refund of $3100, it should hopefully help us recover from the holiday shopping craze.  When it comes to tax time, most of us experience much higher levels of anxiety.  While the thought of an IRS agent snooping through my personal financial information – looking for any reason to put me through a grueling audit nightmare- is enough to make me triple check my numbers, the reality is if we do things right FDR’s statement applies: “We have nothing to fear but fear itself”.

The key to a successful tax season is planning.  If you are just beginning to plan now – you are most likely too late.  Start to think about next year now.  Here are some of the things you should consider:

  1. Set your tax withholdings to suit your family’s financial plan.  Decrease your exemption number to increase the likelihood of receiving a refund later.  Many financial planners advise clients to attempt to break even.  Receiving a refund means the government kept your money interest free.
  2. Know if you will claim a “standard deduction” or if you will “itemize your deductions”.  In this case knowledge is power.  Know what deductions are available to you.  A good reference: http://www.kiplinger.com/features/archives/the-mostoverlooked-tax-deductions.html
  3. Get a professional.  Until our tax code is simplified, the $100 or less most tax professionals charge is well worth the expense.  Standard deduction filers are often comfortable filing on their own.
  4. Don’t forget that Bar-T helps you save money on your taxes!
    1. The cost of before and after school daycare counts toward the Child-Care Tax Credit.

http://www.kiplinger.com/columns/ask/archive/faqs-on-the-childcare-tax-credit.html

  1. Flexible Spending Account – spend before-tax money on childcare!

http://www.kiplinger.com/columns/ask/archive/2009/q0924.htm

Bar-T is there to help you this tax season.  With our new online account management system, you can print invoices & receipts and manage the child-care portion of your tax deductions with ease.  help@bar-t.com has been established to provide answers to our customers with a quick 24-hour response time.

Comments?  Email Tyler Cureton at –tcureton@bar-t.com

Tyler Cureton is a licensed Certified Public Accountant.  He received his Masters in Business Administration from Duke University in 2010 and his Bachelor’s Degree in Finance from BYU in 2004.  Tyler has had the pleasure of being associated with Bar-T since 1995, most recently as the Controller.