Watertown— Yes, you should be receiving your W-2 forms, if you haven’t already from those who have employed you this year.
Some folks drag their feet until April 15th, dreading tax season. “People that wait until the last minute to file, usually have to pay”, said 30-year CPA veteran, Pete Sovie of Bowers & Company, CPAs PLLC.
According to Mr. Sovie, there are some tips people should know. For one, if you have received money as a gift regardless of how much, you do not need to claim it on your tax returns. You also will not get penalized or taxed when given money as a gift.
Here are some more tips to consider when filing your taxes this year:
· Go to a reliable and legit tax preparer to help you file your taxes.
· A single dependent does not get an exemption on a NY State tax return.
· What ever your marital status was as of December 31, 2012 is what you must claim. For example, if your divorce went through January 1, 2013 you still have to claim that you were married when filing taxes.
o Married couples do not have to file taxes jointly.
· You cannot deduct items such as clothes you buy for work, because you can wear clothes elsewhere.
o If you have to buy a uniform for work that cannot be worn outside of work, then it is considered a tax write-off.
o Uniforms that are a tax write-off have to have cost 2% of your gross income.
· If you are divorced or separated, only custodial parents get to claim children on their taxes.
o If the non-custodial parent wants to claim children, then the custodial parent would need sign a release.
o If you are a non-custodial parent and you claim your children, then you will have to pay the IRS back plus interests and penalties.
· If you owe the IRS money you can set up a payment plan.
o If you skip or miss a payment, the IRS can force you to pay the entire amount.
· The average person will not go to jail making a mistake on their taxes.
· If you do not report up to 20% of your income it is considered fraud, which is a felony on your record.
o If the IRS can prove that you had deliberate motivation, then they can even pursue a criminal fraud complaint against you.
§ Criminal Fraud can equal jail time.
· If you do not report up to 25% of your income, it is automatically considered criminal fraud and you can go to jail.