News

Tax time preparation tips

MONTICELLO, Ind. (WLFI) – Whether you have already filed your 2014 tax return or are waiting until the last minute, Baker Milligan managing partner Jeff Milligan said this year those who typically file themselves may want to get a second opinion.

“What used to be a simple return could now be one of the more complex returns to prepare with the affordable care act,” said Milligan.

This is the first year for the penalty for not having health insurance, and Milligan said it has complicated the tax return preparation process.

“We’re having challenges, just in our office, comprehending and understanding the calculations with that,” said Milligan. “As well as all the premium tax credits.”

Milligan said if you have a simple return, filing yourself is probably one of the better ways to go as long as you have a good understanding of finance and numbers.

Trending Headlines

“If you don’t have a general idea of what the answer is supposed to be, you really never know if you’re wrong,” Milligan said.

Milligan said one mistake on a return could cost you, and he said the penalties can add up fast.

“We had a client a couple of years ago who put their own information in and just keyed it in incorrectly,” said Milligan. “I believe the penalty was 20 percent of their balance because it was greater than a $5,000 tax liability.”

Milligan also wants to warn people of phone calls from con-artists posing as the IRS claiming the victim owes money.

“The IRS isn’t going to call you,” said Milligan. “They’re always going to send you correspondence by mail before they attempt collection.”

The IRS tax filing deadline is Wed., April 15.

MORE STORIES

LIKE US ON FACEBOOK