An earlier thread asked the question:
"If we published an article, what we would we tell consumers to do when visiting a tax professional?"
Here's a starter:
1. Spill your guts.
Tell your tax pro everything, unless it involves something you know is illegal, in which case you should be meeting with an attorney instead of an accountant. Tell you tax advisor anything and everything that is closely or remotely related to money--and even a few things that might not seem related to money.
For example, did you know there is a tax credit available for adding certain types of insulation to your home?
Think it somehow doesn't matter that your wife died more than two years ago, way back in January, 2006? Maybe it's hard to talk about it. But if you have children, you might be eligible for Qualifying Widower filing status.
So your nineteen-year old is still living at home, and going to college. You haven't paid a dime toward his tuition, but you are otherwise supporting him. He hasn't paid a dime toward tuition, either. All his tuition has been paid by student loans; he won't have to pay anything until he graduates. So maybe it's a waste of time to even mention it. How could you or your son be eligible for education credits if neither of you actually paid anything? Think again. Your son actually paid his tuition by borrowing money. And if your son is still your dependent, you get to take the credit...
"If we published an article, what we would we tell consumers to do when visiting a tax professional?"
Here's a starter:
1. Spill your guts.
Tell your tax pro everything, unless it involves something you know is illegal, in which case you should be meeting with an attorney instead of an accountant. Tell you tax advisor anything and everything that is closely or remotely related to money--and even a few things that might not seem related to money.
For example, did you know there is a tax credit available for adding certain types of insulation to your home?
Think it somehow doesn't matter that your wife died more than two years ago, way back in January, 2006? Maybe it's hard to talk about it. But if you have children, you might be eligible for Qualifying Widower filing status.
So your nineteen-year old is still living at home, and going to college. You haven't paid a dime toward his tuition, but you are otherwise supporting him. He hasn't paid a dime toward tuition, either. All his tuition has been paid by student loans; he won't have to pay anything until he graduates. So maybe it's a waste of time to even mention it. How could you or your son be eligible for education credits if neither of you actually paid anything? Think again. Your son actually paid his tuition by borrowing money. And if your son is still your dependent, you get to take the credit...