10. I owe more than I did last year. What did you do wrong? Even if your situation doesn’t change a whit – not even a penny – the Tax Code is constantly changing. For example, the Making Work Pay Credit expired in 2010 and was replaced in 2011 with the payroll tax cuts. The credit was a flat amount but the cuts are based on a percentage. So depending on your income level, you could see more of a cut – or less – or it might be the same. Ditto for changes in the standard deduction and personal exemptions. Don’t assume your preparer made a mistake. If you don’t understand why you owe more, ask. Nicely.
Eleven Things Your Tax Pro Doesn't Want to Hear From You This Month
ReplyDeletehttp://www.forbes.com/sites/kellyphillipserb/2012/04/04/eleven-things-your-tax-pro-doesnt-want-to-hear-from-you-this-month/
10. I owe more than I did last year. What did you do wrong? Even if your situation doesn’t change a whit – not even a penny – the Tax Code is constantly changing. For example, the Making Work Pay Credit expired in 2010 and was replaced in 2011 with the payroll tax cuts. The credit was a flat amount but the cuts are based on a percentage. So depending on your income level, you could see more of a cut – or less – or it might be the same. Ditto for changes in the standard deduction and personal exemptions. Don’t assume your preparer made a mistake. If you don’t understand why you owe more, ask. Nicely.
Why didn’t this increase make the news?