Showing posts from October, 2015

When to Amend your Tax Return

   Mistakes are part of life.  If there was a mistake that involves a tax return, there is always the option to file an amended return to make corrections.  We will look at some situations where an amended return would be needed.     If a taxpayer needed to adjust important facts like their number of dependents, total income, or filing status, then an amended tax return would be necessary.  This would also be appropriate if they wanted to claim tax deductions or credits they qualify for, but did not claim at first.  In a situation where a taxpayer owes more than expected, an amended return should be filed as soon as possible.  Doing so will limit interest and penalty charges.  A very important note is that you must file an amended within 3 years of the date the original tax return was filed.  There are many reasons that an amended tax return might be needed for a taxpayer, and certain steps that need to be followed in order to set matters right.  In this time of uncertainty, you ma

Taxes and Marriage: Planning for New Circumstances

    The decision to get married has many consequences that result from it.  A part that needs to be considered is how the taxes of the couples will be affected moving forward.  This has always been an important factor.  The Supreme Court ruled that same-sex marriages are legal which means that they may have a tax "penalty" or "bonus" when they file their taxes just like other married couples.     There is no tax law that gives financial punishments or rewards for choosing to get married.  However, the couple's newly combined income may create a result that needs to be carefully considered.  For example, if one of the spouses has a larger income than the other, they may not be taxed at a higher rate when filing a joint tax return.  This might put them in an situation where they can save money by filing together.  However, the opposite might be true if they have incomes that are about equal and they file jointly.  These are circumstances unique to each couple.