Copyright (c) 123RF Stock Photos

If you filed an extension on your taxes, then you have until October 15^th to get the return prepared and sent to the IRS.  However, there are several reasons to get the return completed as soon as you are able:

The sooner you get the return done, the sooner you can get it off your mind and in the past.

You don’t want to wait until the last minute to get the information to your tax preparer.  There are a limited number of returns that anyone can complete during any one day, and tax preparers usually prioritize their work on a first come first served basis.  So don’t expect to be able to bring your return in to them on the 14^th and have it prepared on time.

The IRS will shut down e-filing after October 15th to get ready for the following tax year, so any return after that date will have to be sent as a conventional paper return. This leads to the possibility of lost paperwork, and if you have a refund due, will delay your receipt of the money due even longer than if the return is sent via Efile.

If you have outstanding taxes that still need to be paid, the longer you wait the larger the penalty and interest imposed.

If you can’t pay all the tax due it is still better to go ahead and file the return.  Only after you have filed the return can you work with the IRS to set up a payment plan schedule with them.

For questions or help in filing a tax extension, feel free to call us at 334-246-1164 or send us a message at steph@alabamaaccountant.com

Call Newstart Bookkeeping and Payroll today at 334-246-1164 for more information concerning your payroll and bookkeeping needs.

In reading the article Seven Facts About the Non-Business Energy Property Credit I was reminded of a potential credit for home owners.

There is a 30% tax credit available for all qualifying home improvements which are “energy efficient”.  The credit is limited to a maximum of $1,500.  This is a CREDIT instead of a deduction, which means it saves you up to $1,500 in taxes instead of deducting up to $1,500 off of your taxable income.

The credit applies to window replacement, insulation, etc., as long as the manufacturer meets government standards and provides a written statement to the homeowner certifying that the standards are being met.

This credit is only on improvements which go into service before January 1, 2011, therefore; time is of the essence.  If a homeowner is planning to make any upgrades in the near future to their principal residence, it would benefit you to complete the improvements before December 31, 2010.

I personally used this tax credit in 2009 for an elderly client.  She was able to receive the entire maximum $1,500 credit which effectively paid for 1/3 of the cost to replace windows which were in definite need of replacement.

The IRS does require that a form be filled out and sent in with your tax return for the year to apply for the credit.

NewStart Bookkeeping & Payroll can help you with any questions you may have about this tax credit and provide you with all your accounting needs.

Let’s talk about how we can help you. Call us today at 334-246-1164 or email us at steph@alabamaaccountant.com