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Oops. What you need to know if you discover an error after you have filed your income tax return.

If you discover an error after filing your return, you may need to amend your return. The IRS may correct mathematical or clerical errors on a return and may accept returns without certain required forms or schedules. Laptop Work-2.jpg

In these instances, there’s no need to amend your return. However, do file an amended return if there’s a change in your filing status, income, deductions, or credits. Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), Form 1040NR-EZ (PDF), or to change amounts previously adjusted by the IRS.

You can also use Form 1040X to make a claim for a carryback due to a loss or unused credit; however, you may also be able to use Form 1045 (PDF), Application for Tentative Refund, instead of Form 1040X. Also, if the Form 8938 (PDF), Statement of Specified Foreign Financial Assets, applies to you, file it with an annual return or an amended return. See the Form 8938 Instructions for more information.

Learn more about income tax planning from the Zinner & Co. tax team

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Patience is a Virtue: Why you need to (still!) wait to receive your tax refund

Patience is a Virtue: Why you need to (still!) wait to receive your tax refund

Cleveland CPA woman waiting by computer.jpgFor the taxpayers who went through the painstaking process of sifting through their shoebox full of receipts in the attempt to file their income tax return early, we have to offer you a gentle and friendly reminder that refunds stemming from returns claiming the Earned Income Tax Credit or the Additional Child Tax credit will be delayed until February 15. 

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Pay Me Now, Pay Me Later: Should you pay quarterly estimates or utilize tax withholdings?

Pay Me Now, Pay Me Later: Should you pay quarterly estimates or utilize tax withholdings?

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Many clients ask if it is more advantageous to pay quarterly tax estimates or utilize their tax withholding. I wish there were a simple, cookie-cutter answer. However, as no two taxpayers are alike, the same goes for the manner in which one can pay one’s taxes. 

Both methods of paying income tax have their pros and cons.  The best selection depends on your personal preference and, more so, financial situation.  A majority of self-employed individuals must utilize quarterly payments.  However, if you have an income source such as retirement distributions, social security or employee wages, you have the option of withholding tax from those income streams in lieu of paying quarterly.  read more…

Why Your Bag of Used Clothing Isn’t Worth $1,000: The 2016 Noncash Charitable Contribution Fair Market Value Guide

Why Your Bag of Used Clothing Isn’t Worth $1,000: The 2016 Noncash Charitable Contribution Fair Market Value Guide

Like many taxpayers, you may have recently (or routinely) donated a few bags of clothing and household items to a 501(c)(3) charitable organization.donation box stock.jpg The $125 designer jeans, a box of barely-used stuffed animals, and eclectic wall art were sought-after purchases that found their way to your home through your hard-earned dollars. Certainly, your goods were priceless treasures to you and you presumed the same for the lucky charity to which you would donate them. 

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Why You Will Not Receive a Tax Refund Before February 15

Why You Will Not Receive a Tax Refund Before February 15

On December 18, 2015, President Obama signed legislation called “Protecting Americans from Tax Hikes” Act of 2015, or the PATH Act for short.  Waiting by mailbox.jpg

The PATH Act contained many extensions and changes to existing tax laws.  The Act also included a provision which will delay refunds for certain taxpayers.  The IRS is now required to not issue a refund to anyone claiming the Earned Income Tax Credit or the Additional Child Tax Credit until February 15.  Both of these refunds are considered “refundable credits,” which are essentially treated as additional tax payments, and can reduce one’s tax liability below zero.  More, the PATH Act was enacted to give the IRS more time to review refund claims, in an effort to reduce fraud and catch refunds that may be improperly issued.

Do you have questions about the PATH Act, your refund, or income tax preparation? Let’s talk! Contact me at btheofilos@zinnerco.com or any of the professionals here at 216.831.0733. We’re ready to start the conversation and end the confusion. 

Tax Return Planning Guide: Download Your Free Ebook

Tax Return Planning Guide: Download Your Free Ebook

It’s that time of year again when most are thinking about filling out their tax return. Many are sifting through shoeboxes full of receipts, others, wondering if they have a receipt.

As we welcome 2017 and with the 2016 tax year at a close, many individuals and business owners are still asking what they can do to reduce their tax obligation, discover tax credit opportunities, or put themselves in a more favorable tax position. While some of the actions items should have been wrapped up by the end of 2016, there are still many things you can do from now and continuing throughout the rest of the year. Zinner-2016-Year-End_Cover-400px.jpg

Our free Ebook, 2016 Year End Planning Guide will provide you with options, suggestions, and solutions that may benefit you this filing season.

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Since 1938, Zinner has counseled individuals and businesses from start-up to succession. At Zinner, we strive to ensure we understand your business and recognize threats that could impact your financial situation.
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