Helpful Tax Tips Esther L. Ehrlich, CPA

​​Tax season is here and in full swing. The deadline to file your 2015 tax return is Monday, April 18, 2016. Washington D.C. will celebrate Emancipation Day on the traditional April 15 due date, which pushes the deadline to the following Monday. Here are a few tips to make this year's tax season go as smoothly as possible.

1. Get organized ‐ This is one of the best ways to make your tax season faster, easier and stress‐free.
   • Place a basket in an easily accessible place where you can place all your tax forms as you receive them in the mail. Nothing slows down the preparation of your tax return more than a misplaced tax form. It can
     be several days to receive a replacement.
   • Purchase (or re‐purpose) a folder in which to place the forms once you begin opening the envelopes.
     An accordion‐type folder is ideal because it allows you sort the various forms and receipts into
     categories.
   • Now is the time to start going through your bank statements and obtaining copies of payments for items
     such as real estate taxes, medical expenses, charitable contributions, and unreimbursed employee
     expenses.
   • If your tax preparer provides you with a tax organizer, fill it out. This is a great tool for you. Take a few
     minutes to read through the pages ‐ it may jog your memory on the year's activity or provide ideas for deductible expenses. A completed organizer will also minimize preparation time, which will save your tax preparer time and save you money.
2. Get connected ‐ The Internal Revenue Service's website (www.irs.gov) provides free information and resources such as:
   • Forms and publications (www.irs.gov/Forms‐&‐Pubs)
   • Checking the status of your tax refund (www.irs.gov/Refunds)
   • Tax return transcripts (www.irs.gov/Individuals/Get‐Transcript)
   • Information on credits and deductions (www.irs.gov/Credits‐&‐Deductions)
   • Withholding Calculator (www.irs.gov/Individuals/IRS‐Withholding‐Calculator)
   • Sales Tax Deduction Calculators (www.irs.gov/Individuals/Sales‐Tax‐Deduction‐Calculator)
3. Best to e‐file ‐ The 2016 filing season opens on Tuesday, January 19, 2016. The IRS will begin accepting individual electronic returns and will begin processing paper tax returns that day. Choosing e‐file remains the fastest and safest way to file an accurate income tax return.
   There are free e‐file services available to taxpayers, including:
   • Individuals and families with incomes of $62,000 or less are eligible for IRS Free File. Commercial
     partners of the IRS offer free brand‐name software at no cost to you.
   • The Volunteer Income Tax Assistance (VITA) offers free tax help to people who generally make $54,000
     or less, persons with disabilities, the elderly and limited English speaking taxpayers. IRS‐certified
     volunteers provide free basic tax return preparation with electronic filing.
   • Tax Counseling for the Elderly (TCE) program offers free tax help to all taxpayers, particularly those who
     are 60 years of age and older. The program specializes in questions about pensions and retirement‐
     related issues unique to seniors.
   • Call 1‐800‐906‐9887 or visit http://irs.treasury.gov/freetaxprep/ to locate a VITA or TCE site.
4. Get direct deposit ‐ If you are expecting a refund, consider using direct deposit. It's simple, safe and secure.
   • The Treasury department uses the same electronic transfer system used to deposit nearly 98 percent of
     all Social Security and Veteran Affairs benefits.
   • You will usually receive your refund in 21 days or less.
   • You can use it to deposit your refund into one, two or even three accounts, including your Individual
     Retirement Account.
   • You can split your refund easily by using your tax software. Or, you can use IRS Form 8888 Allocation of Refund. 

​Esther is a Tax Manager at Lauterbach, Borschow & Company, P.C. and is an adjunct lecturer teaching Individual Federal Taxation at the University of Texas at El Paso (UTEP). She has practiced in public accounting for 10 years where she has worked with closely-held/family businesses and individual taxpayers. Esther graduated from UTEP with a Master’s degree in Accountancy and a Bachelor’s degree in Accounting. She is a Certified Public Accountant licensed to practice in Texas.