What Tax Preparers Don't Want You To Know

For most tax season is one of the best times of the year. However, we want you to keep in mind things tax preparers don't want you to know when you decide to use their services.

Ø  I am not prepared to prepare your taxes

All tax preparers are required to have a Preparer Tax Identification Number (PTIN) issued by the IRS before December 31 of every year. This PTIN is not an indicator that the tax preparer is a tax expert, rather, required by the IRS to be registered with the IRS to prepare tax returns for compensation. All tax preparers are not educationally experienced in preparing taxes. 

Ø  CPAs are not all tax experts

Reality is most CPAs are actually auditors with little to not experience in taxes, specifically personal taxes. Make sure you match expertise with your needs.

Ø  I did not prepare your return

Most large corporations use a tiered tax preparation system. Meaning, a lower-end tax preparer inputs your information and a manager reviews your return before submitting it to the IRS. Although this is a check process, which is the best practice, it will not guarantee the manager or reviewer will catch any mistakes made by the preparer. Keep in mind to that some tax preparer outsource returns left with them. This is something you want to ask your preparer.

Ø  I conservatively prepare returns 

Because of federal tax codes and regulations preparing a return can sometimes be over complex for a tax preparer. Therefore, instead of researching and applying potential advantages, most tax preparers apply general tax rules, which is on the surface; like over-the-counter tax programs. Some prepares to this to reduce your odds of getting a tax notice with you having a higher tax liability. To get the most benefits from the complexities of the tax code, you must be willing to pay the fees necessary for a preparer to research to get a worthy conclusion. This is necessary when you keep in mind that wasting time and 

money trying to save a few bucks versus hundreds or thousands of dollars.

Ø  I am afraid to look more deeply into your situation, even if it saves you money

Understand that time is money and most tax preparers may fear giving you a big bill for it, in fear you may not pay or complain. There is a lot of opportunity that exists in itemizing deductions for a more advantageous conclusion, which the cost it worth it. Make sure your preparer knows you want him or her to look for opportunities of tax saving and that you are willing to pay for it. 

Ø  I cannot give you a bunch of tax credits

Preparers do know how to get you tax credits and some over that you may not qualify for. Be aware that if your tax preparer offers to get you a bunch of tax credits, especially those you know you do not qualify for--run in the opposite direction-- an audit is soon to come following those credits.

Always remember that paying a business to prepare your taxes is simple. Finding the right business to prepare your taxes isn't. Make sure you thoroughly understand your preparer's competence and experience (and are willing to pay for it) so you aren't leaving money on the table come April 17, 2018.

Website: www.gallowaytax.com
Email: gallowaytax@gmail.com
#gallowaytax

Dirty Dozen of Tax Preparers--Is Your Tax Preparer legal or Not

12 Ways You Can Tell If Your Tax Preparer is Legal or Not

Please, choose wisely if you choose a tax professional. If you choose a paid tax professional, please, protect yourself. 

1. If a paid tax professional is stating something that seems too good to be true, it likely is. A valid paid tax professional will NOT tell you "I can get you xxx$." 

2. A paid tax professional, legally, can NOT file a tax return using only a pay stub, unless it is after Feb 15th and a Form 4852 is included with the return. 

3. A paid tax professional must provide you with a complete copy of your tax return PRIOR to e-filing the return. 

4. A paid tax professional can NOT charge a % (percentage) of your refund amount. 

5. A paid tax professional MUST sign the tax return and provide their PTIN# on the tax return that you pay them to prepare. 

6. A paid tax professional must have you sign a Form 8879 to authorize e-file of your tax return. If you have paid a tax professional to assist with your tax return and the signature area says "self-prepared," that is NOT a valid tax professional. 

7. A valid tax professional will NEVER state, "So, what kind of refund do you want?" 

8. A valid tax professional will NOT tell you what you want to hear or adjust numbers if you don't like the outcome on your tax return.

9. If you have a question about your tax return and have chosen a tax professional, that tax professional should be able to readily answer your questions in a way that you understand. A valid tax professional has a vast amount of education that they complete, on a yearly basis. If a tax professional states that they have IRS Credentials, you can check those credentials at the IRS website in the "RPO Directory and Authorized E-File Directory." https://irs.treasury.gov/rpo/rpo.jsf. Please not that all tax professionals are not credential some are classified as preparers who hold current PTIN active status with the IRS, which makes them legal.

10. A valid tax pro will NOT allow you to deposit your refund into their bank account or sign a refund check for you. They also can NOT negotiate your tax preparation fees into their personal bank accounts or to their prepaid card. They can use a bank provider that allows you to pay for tax preparation from your refund, but your refund goes through a bank provider, NOT the tax professionals account. While there are many legitimate tax professionals, there are plenty that are not. 

11.If you have paid a tax professional to assist with your tax return and something is fraudulent on that tax return, YOU, the taxpayer are ultimately responsible for what is on that return. 

Be very aware of those out there that say they are a tax professional and are nothing but "rogue & shady" and only out to charge you for something that will be incorrect or fraudulent. It is not uncommon for a taxpayer to receive an IRS or State tax notice even when everything on a tax return is accurate. If you choose a tax professional, make sure it is someone who will help you address any future IRS or State tax notice. There is a big difference between an error on a tax return and something that is downright, fraudulent. Taxes are not always easy to understand so it is common to reach out to a tax professional if you don't feel comfortable preparing a return on your own. That's fine, as long as you can verify that person is a true tax professional. May your 2017 tax returns be accurate, legal and stress-free. God Bless.

GTE Travels To Charlotte, NC on January 27, 2018

The Queen City Business Expo features 50 businesses from the Charlotte Metro area. These companies are the back bones of our communities and the current/future employers to develop the city. Companies of all facets of business will be in attendance showcasing their companies. You can expect free giveaways, coupons, discounts, and special offers. 150 FREE swag bags and 300 FREE samples from Crabtree & Evelyn will be door prizes.

Galloway Tax Express will be doing taxes on the spot. File early and get your refund early. Do you need a job? Check out “Career Row” and bring your resume. Multiple companies will be onsite hiring! Music, food, shopping, and entertainment round out the festive event. 

Already have your W-2 and other tax documents? Galloway Tax Express will be at The Queen City Business Expo preparing tax returns. Be among one of the first this year when you come to the expo and get your tax return prepared.

What Will Happen in 2018 If The Government Shutsdown

If government shutdown happens, either will happen or both. The tax season will start later than January 29, 2018 or refunds maybe released in mid-or late March! From #gallowaytax, this is not good for taxpayers who have paid in their tax dollars and is expecting their refunds.

https://www.politico.com/story/2018/01/19/government-shutdown-2018-tax-law-350858?lo=ap_b1

GTE Referral Progam to pays $75 per referral

Have you ever thought about the complaints your hear from friends and family members about their tax preparer or their unhappiness with their tax return? We have the perfect solution for you! Refer them to Galloway Tax Express. We will pay you $75 for every person you refer to us! YES, $75! You do not have to be a client of GTE, just refer and you get paid! Refer someone today.

Claiming your parent or a relative as a dependent

Are you your parent caregiver and always wanted to know if you could claim your parent as a dependent? 

Answer:

You may claim your parent as a dependent if you meet the following IRS tests:

1. You're not a dependent of another taxpayer.
2. Your parent, if married, doesn't file a joint return, unless your parent and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid.
3. Your parent is a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico.
4. You paid more than half of your parent's support for the calendar year.
5. Your parent's gross income for the calendar year was less than the exemption amount.
6. Your parent isn't a qualifying child of another taxpayer.

Relatives who don't have to live with you. 

A person related to you in any of the following ways doesn't have to live with you all year as a member of your household to meet this test.

1. Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). (A legally adopted child is considered your child.)
2. Your brother, sister, half brother, half sister, stepbrother, or stepsister.
3. Your father, mother, grandparent, or other direct ancestor, but not foster parent.
4. Your stepfather or stepmother.
5. A son or daughter of your brother or sister.
6. A son or daughter of your half brother or half sister.
7. A brother or sister of your father or mother.
8. Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

Surprisingly, any of these relationships that were established by marriage aren't ended by death or divorce.

TAX DEDUCTIONS HOMEOWNERS SHOULD KEEP IN MIND

New homeowners do not know how lucky they are to be able to write off mortgage interest and property taxes. Galloway Tax Express want our clients to take advantage of all tax benefits as a homeowner with the following tips.

Homeowner Mortgage Interest

This is the most common homeowner tax deduction. This includes equity loan, home improvement loan, and points. If you have a first or second home you may be able to deduct that interest up to $1 million dollars in loan value.

     

Equity Loan Interest

 You may be able to deduct some of the interest from your home equity loan, however, limited to the smaller of $100,000 or the total of your home’s value minus the outstanding debt.

Home Improvement Loan Interest
Home improvement loan interest can be deductible up to $100,000. The loan must be for capital improvements and not simple repairs. Capital improvements is something that will make your home value increase or change the way you can use your home. Examples of capital improvements include:

• Porch
• Insulation
• Built In Appliances
• Roof
• Fence
• Garage
• Landscaping
• Deck
• Swimming Pool
• Heating
• Cooling

Home Purchase Points
If your home purchased or refinanced was your primary home, you may be able to write off the points from that loan with the point from a second home being spread out over the life of the loan.

Homeowner Home Property Taxes
Almost always, state and local taxes are deductible in states, whether paid in escrow or to the state.

Home Office Tax Deductions
Home offices may be able to deduct costs related to that portion of your home. However, must be used exclusively as your place of business or as the storage for samples and inventory.