4 Last-Minute Tax Tips

April 16, 2021

Tax Day is almost here, which can cause minor panic among those who haven’t completed their 2020 taxes. If you are one of these people, take a minute to breathe and remember you still have time to file without the risk of fines. Use these tips from your Los Angeles accounting service to improve your 2020 return and possibly save more money. 

Double-Check Your Paperwork

Make certain you have all of your correct paperwork before starting the filing process, such as your health insurance and student loan documents, all 1099s if you are an independent contractor, your mortgage and saving account interest statements, and 2020 property tax bill. Other applicable documents can include medical expense records and charitable donation receipts. You’ll save yourself time and stress by having these documents in order first. 

Research All Possible Deductions

If you aren’t taking the standard deductions because your itemized deduction total is higher, ensure you have applied every single deduction for your job. You might be entitled to deductions you haven’t thought about or didn’t know applied to your profession, such as rent and home office expenses. All travel expenses for work can be deducted as well. 

Put More Money Into Your Health Savings & IRA Accounts

Decrease your tax burden by adding money to your HSA (health savings account). You can add up to $3,550 to your 2020 account or up to $7,100 if your contribution is on your family’s behalf. It isn’t too late to add money to this fund, and you can add another $1,000 to the contribution if you are 55 or older. It’s also possible to contribute to your IRA to relieve your tax burden–up to $6,000 or up to $7,000 if you are 50 or older. Contributions apply to traditional IRAs exclusively, so do not make contributions to a Roth IRA unless you want to. 

Consider Working With Tax Experts

Relieve considerable tax prep stress by hiring your local Encino tax consultations. They offer tax preparation services that allow you to file error-free documents with the IRS. The experts will also make sure you take advantage of every applicable credit and deduction, and will answer all questions you have about the filing process. 
Discuss your tax prep needs today with Wallace and Associates, your Los Angeles accountant service.