When it comes to filing tax returns, most people utterly dislike it. On top of that, most people have no idea how to file tax returns correctly. Karla Dennis, the CEO of Karla Dennis and Associates, Inc, highlights an intriguing point in this regard.
She says:
“It is a fact that when we don’t want something, we just want to “be done with it” as soon as we can. Sadly, this approach, when it comes to filing tax returns, is synonymous with digging your own grave. That’s why people regularly commit grave mistakes while filing their tax returns.”
Karla Dennis is an award-winning and Forbes-featured tax advisor and tax strategist. She has a firm grip on all matters related to taxes. Here are three major blunders she believes people regularly commit while filing tax returns.
1.Postponing Tax Returns
Most people have the terrible habit of procrastinating over everything. Karla says:
“We think we can get the job done at the eleventh hour, not realizing that the quality of it won’t be the same.”
Waiting until the last minute has huge negative tax consequences. Make sure you file your tax returns as early as possible.
2.Not Seeking Professional Help
People often think they can simply search stuff on YouTube or google things and do everything on their own. But unfortunately, taxes are incredibly complex, and it’s difficult, if not impossible, to file your tax returns 100% correctly without help from a licensed professional.
3.Relying Totally on Software
Tax software has made filing tax returns easier, but that doesn’t mean they are perfect. There are way too many variables for software to handle.
In addition, every person’s life is unique on many levels, and that is something only an expert tax professional can take into account and fully understand.
While it is true that you should seek help from a professional who files taxes for a living, that doesn’t mean you should know nothing about it. On the contrary, according to Karla, everyone should educate themselves about taxes.
She regularly uploads content on her Instagram, website, and YouTube channel to educate the general population about basic tax matters and legal issues. In addition, everybody should know what compulsory information and forms they should have before filing a tax return.
There are two basic things you must keep ready:
a.Your last year’s tax return
b.All third-party source documents, such as w-2’S, 1099-S, and 1098 forms.
Should You Rely on Tax Preparation Software?
According to Karla Dennis, using tax preparation software is fine only if you are a college student and only have a w-2. She strictly discourages using over-the-counter tax software if you have anything above a basic w-2.
You can file simple tax returns with the help of tax preparation software. However, Karla strongly believes over-the-counter tax software can’t handle the complexity of tax returns and tax law changes.
How Can Karla Dennis and Associates, Inc. Help You?
Karla Dennis and her firm are fully dedicated to helping people with their tax returns. The main goal of Karla Dennis and Associates, Inc. is to help clients get the most money back on their tax returns. Karla’s firm deals with taxes on just on April 15th but throughout the year.
Her firm tries to get to know the clients, understand their lifestyles and needs, and structure a tax plan that encompasses their lifestyles and needs and future financial goals. Karla’s firm strictly follows the U.S. Income Tax Code.