After a Rough Year, Financial Consultant Steve Sexton Helps Simplify Tax Filing
SAN DIEGO, March 11, 2021 (Newswire.com) - The 2021 tax season is underway, and with it comes several new considerations and potential scams to watch out for. To help, Steve Sexton, financial consultant and CEO of Sexton Advisory Group in San Diego, California, is sharing five tips to prep for tax season success.
- File early. This year there has been much talk about extending the tax deadline. However, Sexton still stresses the importance of filing early. "Failure to file on time can land you an expensive penalty, and it gives fraudsters an opportunity to file in your name," says Sexton.
- Get organized. "With so many extenuating circumstances last year, it is so important to be organized and meticulously assess all financial documents," says Sexton. "Some people may have filed for unemployment, while others may have jumped between multiple jobs. It's important to first, ensure you have all necessary documents, and second, carefully look over each one to ensure it is accurate." Sexton recommends getting all financial and tax documents together ahead of time, including medical expenses, charitable donations, and any 1099s from investments.
- Know what questions to ask. While many people enjoy receiving a large refund check, Sexton actually advises people to speak with their tax preparer and ask how they can get their refund down to $50 to $100. "This allows you to set up your taxes in a way where you receive more money year-round that can potentially be placed in a tax-free account such as an IRA or 401k." He also recommends asking about VITA (Volunteer Income Tax Assistance) which provides free tax help to qualified individuals.
- Be on high alert for tax scams. Each year brings a bevy of new tax scams and 2021 is no different. Sexton warns never to open emails or download any apps claiming to be the IRS. "This year, we are seeing a lot of people receive 'Taxpayer Advocacy Service' calls that are actually scammers fishing your information," says Sexton. "Other ones to look out for are 'ghost tax preparers.'" For a full list of tax scams, he recommends visiting the IRS or FBI websites.
- Hire a qualified tax preparer. "It's easy to be drawn in by promises of massive deductions and large returns," says Sexton. "I would be weary of any tax professional making larger than life claims or requiring cash payments." Sexton suggests always checking that your tax professional has an active Taxpayer ID number to be sure you are working with a reputable source.
For more information on Sexton Advisory Group, please visit https://www.sextonadvisorygroup.com/
Source: Sexton Advisory Group
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