5 Income Tax Preparation Tips

ome tax time again! It's when Uncle Same wants toEntertainment Expenses
know how much money you earned and how muchThis is an IRS red flag and needs to be carefully
income tax you owe him. We all want to pay lessreviewed by your Trippon CPA Income Tax
income tax each year. Instead of looking for taxPreparation Specialist. In March 2002, new legislation
loopholes and grey area deductions, at J.M. Trippon &was passed that prohibited entertainment expense
Company CPA's we specialize on tax planning to notdeductions for personal use. Usual and customer
only save you money on this year's taxes, but alsobusiness related meals and entertainment can be
focus on the years ahead to reduce tax liability for thededucted up to 50% of the receipt. You will want to
future. Here are five basic tips that we have used toreview all entertainment expenses with J.M. Trippon &
save our clients millions of dollars over the last 25Company CPA's to make sure you reduce any
years in processing over 10,000 income tax returns.potential tax liability.
Travel ExpensesTax Records
The key to deducting the most from mileage on yourKeeping accurate and complete income tax
income tax return is keeping complete and accuratepreparation records will make your life so much easier.
logs of your travel expenses. Travel expenses canKeeping accurate tax records will reduce your cost in
include airfare/transportation expenses, conferenceincome tax preparation, and make you prepared in the
trade show/seminar attendance fees, hotels/rent-a-carevent of an IRS audit or IRS tax dispute. Be aware
expenses, and parking fees. Consulting with an Incomethat you are legally required to keep your tax records
Tax Preparation Expert about your vehicle deductionsfor three years following the filing date. 5.
is a wise choice. There are additional deductionsDeadlines
available that only a qualified tax accountant wouldThe deadline for federal income tax preparation is April
know.15th. You much have your federal income tax return
One travel expense that most people do not knowpostmarked by April 15th. By filing your federal income
about is the travel expenses for those who have twotax return prior to the deadline, you will avoid penalties
different employers. You may deduct the travelingand interests from the IRS.
expense from the first job to the second job.You may file for a filing extension. If you are in need of
However, if you have a single employer, you cannotadditional time for income tax preparation, you can file
deduct the travel cost to and from you home andfor an extension. There are regulations on who can file
place of business.for an extension, so you will want to consult with your
Medical ExpensesTrippon CPA Income Tax Preparation Specialist to
Keep all of your medical expense receipts andmake sure filing an extension is right your income tax
statements which are not covered by your medicalsituation.
insurance. You will need a copy of all out-of-pocketIncome Tax preparation makes everyone anxious. At
medical expenses in order to qualify for the deduction.Trippon CPA's, we have learned that the earlier you
The amount of deduction is highly dependent on yourstart, the better we have a chance to do our research
income. You will need to discuss this with your Tripponand save you the most on your income tax return.
CPA Tax Account. There are certain medical/dentalTo begin the income tax preparation process, fill out
insurance premiums that are deductible which yourour Tax Assessment Questionnaire, or call us at
income tax specialist can determine.713-661-1040 to schedule a free tax evaluation.