Anchor: Good morning. It’s now 6:26 but it’s also tax time and our money guy Kurt Pearson is here this morning.
Anchor: Yes, and we’re down to crunch time now on filing taxes. Every year some tax returns have errors that can be very easily avoided. So for people who may be pushing it to the last minute, what should they be looking for on those issues.
Kurt: Well first of all pushing it to the last minute always causes us to make mistakes and so it may be something were people want to go ahead and file the extension to give themselves a little bit of extra time. Of course if you owe taxes you may be facing penalties and interest and so forth so it’s very important to consult with a tax professional if you’re anticipating that type of an approach. But some of the typical errors of course, signing the return is very important. Simple math computations sometimes kick a return out. Of course if there’s a mismatch between what has been reported to the IRS from your employer and what you report that’s going to kick the return out and cause delays. So some of those basics are very important to get those right.
Anchor: The Turbotaxes of the world have become so popular and so many people rely on them, but when you use them you are always wondering am I cheating myself out of money? That’s kind of a debate to have, isn’t it?
Kurt: Yes, it really is, and one of the key red flags about maybe time to hire a professional is if you’ve had something significant happen during the year – a major life transition, or if you’ve had a significant raise or certain events. It’s very important maybe to get that tax professional involved. Now if you’re up against the deadline you can go ahead and file using some of the software but then get in to a tax professional after their season kind of wraps up because then they can file a corrected return for you if necessary. So you can get their advice even after the fact so you make sure your return is as accurate as it can be.
Anchor: So you’re not cheated.
Kurt: Yes, exactly.
Anchor: Alright, well if you have questions you would like Kurt to answer you can always contact him at Compass Financial. The number there is 515-327-1020.