Tax season is coming. By learning more about your taxes and consulting an advisor, the tax preparation process can be much easier. AOG Wealth Management, your local expert in financial planning in Washington, DC and Northern Virginia answers a few of the most frequently asked questions we get about taxes.
1. How does filing my taxes early benefit me? The biggest advantage of filing early is getting your tax refund sooner. If there are issues with your taxes, you get to have more time to deal with them. You can ask for an extension if you are filing late. However, forgetting to file on time and neglecting to ask for the extension may result in fines and interest.
2. How do I differentiate exemption, credit, and deduction? Exemptions and deductions work the same way as both reduce your taxable income. This results in lowered tax bills. The only difference is what you are getting and taking them for.
Exemptions involve what you are getting for family members and other dependents. Deductions, on the other hand, are for a range of things, including charitable deductions or student loan interest. Credits, however, work differently as they are a straight-up discount on your tax bills. If you want to learn more about how each works, consult your financial advisor in Washington, DC and Northern Virginia. AOG Wealth Management can guide you through the tax process and the essentials involved with it.
3. What do I do if I made a mistake with the tax-filing? Tax filing mistakes can be corrected. Waiting longer may lead to further interest and penalties. Be sure to fill out the necessary forms again with the corrected information.
4. Do I need a financial advisor? This will depend on how complex your finances are. Significant life changes, owning a business, free lancing, or having complicated stocks and investments are just some examples of where a financial advisor and tax consultant can help keep things straight. Consulting an advisor can be an excellent investment in of itself. AOG Wealth Management, for instance, has deep experience in tax preparation and planning. Our guidance and quality solutions can help you meet your unique financial goals.
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.