Here’s what to do as you prepare to file tax returns
Tax day is looming with just over a month left to get your returns filed.
A survey from Retail Me Not found one in three Americans will file their taxes within the next month.
Rob Burnette is the CEO of Outlook Financial Center in Troy.
“It’s a busy time. But you got to be compassionate with the taxpayers because they really don’t know the tax code,” Burnette said.
>> Former Cincinnati Reds catcher, member of Big Red Machine era, dies at 76
He says this time of year is so busy for him he essentially has two full-time jobs.
“The biggest thing is just getting all your records together. If you’re going to do your taxes yourself, and you’re going to find them on paper. My recommendation is don’t do that,” Burnette said.
Instead, you should file electronically. It avoids lost papers and gets you a tax refund quicker.
In regards to tax refunds, IRS data shows refunds are down this year. Just over 6 million people who got a refund last year aren’t getting anything this year.
>> Man accused of killing local 15-year-old in ‘rolling shootout’ formally charged
“Part of it is also going back and looking at your withholding. If you’re withheld correctly, then you’re going to have essentially no tax due. you’ve paid your burden as you go,” Burnette said.
While not getting a refund may feel like a bad thing, Burnette says you shouldn’t think of it that way.
“What you have essentially done is given the federal government an interest free loan for a year, and then you have to file and beg for it back. I don’t like that,” Burnette said.
When you don’t have a refund, Burnette says that typically means you are getting more money in your pocket monthly instead of that lump sum you’ve essentially loaned the government.
“A lot of people use that refund, they get caught up. Well, let’s not get behind in the first place by making sure we’re properly withheld that we have the cash flow every month to meet our specific needs,” Burnette said.
