Its critical to have a plan to maximize the benefits

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
there's money left, pay down debt. It's critical to have a plan to maximize the benefits from a refund, said Ernie Almonte, On the debt side, focus on credit cards charging the highest interest rate, the group suggests. As for emergency cash, three months used to be the suggested standard. But because it's still hard to find well- paying jobs, it would be more prudent to build up a reserve of at least six months. Add it all up, then check it twice . The IRS recently reported that it spotted 2.7 million math errors on 2011 returns, more than double the number from the prior year. If you don't want to get a letter from the agency, emphasize accuracy when preparing your return. The biggest math mistakes involved inaccurate tax calculations, followed by an incorrect number or dollar amount of exemptions. Then came errors involving the Earned Income Tax Credit, followed by those for standard or itemized deductions, the Child Tax Credit and the First-Time Homebuyer Credit. While you're at it, make sure you spell your name and those of your spouse and dependents correctly, and verify that everyone's Social Security number is accurate. Know your audit odds . There is safety in numbers around tax time, with the IRS auditing 1.03% of individual returns in the most recent year. While that's a low proportion, certain activities and behaviors can put you at greater risk. High income is one factor. Only 0.9% of people with income of less than $200,000 faced an audit in 2011, but 12.1% of those earning at least $1 million did. Certain business categories also face heightened IRS scrutiny,
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern