Glam-Bot Financial Goals: Tax Season Basics for the Everyday Glam
Hi Glams!!! I'm super excited about this post, it is not only my mission to inspire you with "All Things Glam" but to make sure I bring valuable information to you as well. With that being said it goes without saying that we are currently in Tax Season and its time to BALLLL OUTTT, lol, GLAMS I AM JOKING!!! Today's post will serve as a survival guide to navigating your tax season as well as some do's and don'ts. I'm at a point in my life where knowledge is literally power and I need to know the why behind the processes and the procedures of the IRS!
I'm so honored to introduce to you my very own BLACK GIRL MAGIC, Ms. Sommer Patterson!! I met Sommer many years ago through a mutual friend and we have kept in touch all this time. Sommer is on her 'ish' and she is such an inspiration to me because I see the way she hustles to make her dreams come true! Sommer has been preparing my taxes for the last 3 years and she is the epitome of knowledge and professionalism. The good the bad the ugly she handles my returns and prepares me for the worst when I owe- Its so important to build these kind of relationships with people you trust especially someone as important as your tax prepares!
Here is a little background on Sommer: Born and raised in Detroit MI, Sommer Patterson is a 29-year-old Entrepreneur. Growing up in a single parent household in the inner city, she faced many challenging struggles. However, with hard work, perseverance, and faith- she overcame them. Sommer always took her scholastic achievements very serious and graduated High School and College with honors. She graduated from Wayne County Community College with two Associate's Degrees; one in Business Administration and one in Accounting. Ms. Patterson also graduated from Wayne State University with a Bachelor's Degree in Journalism/Communications. Currently, she is the CEO and sole operator of a financial services firm located in Southfield MI- called Precise Financial Services LLC. Sommer has been in business for over 6 years now and plans to expand her reach.
Precise Financial offers very important services that aim to equip the community with the tools needed for financial success. They include Tax Preparation and Planning, Credit Restoration and Consulting, Budgeting, Small Business Startup and more. Ms. Patterson is very passionate about financial literacy and believes when people have the right knowledge concerning their finances, it is truly empowering. Sommer is dedicated to not only servicing her community but educating them as well so that they don't have to be lost in the dark when it comes to properly managing their finances.
I sat down with Sommer to ask her a few questions about all things Taxes.... I hope this will bring much clarity to Tax Season.
1.) Why is reporting to the government so important?
-Reporting your income and earnings to the government is important because you are mandated by law to do so. If you avoid doing so you can be fined or face jail time,this is important because this can also be known as tax evasion. Staying in compliance of the law is important because you don't want to face any penalties. When you are applying for mortgages or larger loans you may have to prove your income by showing 2 years of tax returns.
2.) Navigating your W-2 and I9... what is the difference between these forms? What are the important areas on this documents?
- The W2 which is more commonly recognized and lets you know how much you were paid in wages by a certain employer. The I9 is used as an employment verification during your on boarding stages when starting a new job. The W-4 is used in determining how much taxes is to be taken out. The entire document is important because you are taxed according to the number of withholding's you have, this is to ensure that you are not held as a liability at the end of the year. It's basically asking how many people are you taking care of and being taxed accordingly.
3.)What are some repercussions of not reporting to the government? What are the repercussions of submitting false information to the government (ex. Claiming other people’s kids, exaggerating or falsifying your earnings)
-It is always important to be honest and let the government check your pockets! You can be penalized if you under report your earnings or if you are adding more dependents or other credits and deductions that can get you letters in the mails requesting audits. This can lead to garnishments, court appearances and the such. Take whats yours and do not take what does not belong to you! Part of being a good adult is paying your taxes, and if you didn't get a return it wasn't meant for you to get one AND more than likely you probably made good money that year!
4.) What is the deadline to file this year and what happens if I miss this deadline?
-The deadline to file is April 17, 2018, this is only for people who owe or expect to owe a tax liability. It is actually a big myth that everyone has to file by the April deadline, the deadline is always in April, but you can file your return at any point you choose just as long as you don't mind waiting for your return, you actually have up to 3 years to do your return but you don't want to go past that time frame you will be subject to forfeit that return. If you owe you can file for an extension, the IRS will note your account and the expectation is that by October of that year your payments should be in (6 months) but you need to set up payment agreements
5.) If I owe the IRS what options do I have?
-If it is determined that you owe you have MANY options, they actually want to work with you because essentially they just want there money. It is a big myth that the IRS is this gang of mean and bad people looking to get you. Your options include direct debit or electronic funds withdrawal. You mail a check or money order or even do a wire if you feel like you will have the amount owed by the April 17th deadline. If you don't feel like you will have the amount owed you can then go to IRS.gov and set up a payment plan and tell them what you are able to pay monthly. The IRS will either accept your offer or counter your offer.
6.)With so much fraud going what are some precautions to take to ensure “the bag remains secure”
- When filing your taxes you should thoroughly research any prepared company and look up there background and reviews. Even if it is a large company you still need to find out there track record. You should never carry your personal information such as a birth certificate or SSC on you, you can risk losing it or being a victim of a scam. ASK QUESTIONS and stand guard of your sensitive information. If you should loose this info move swiftly in filing reports with the police and credit bureau to notify them immediately.
I want to THANK Sommer for the opportunity to gain all the wisdom from her and I hope all my GLAMS learned something from this piece!!! If you would like to have Sommer look over your taxes she is AMAZING!! Connect with Precise Financial Services!! Email her at email@example.com
Until Next Time Glams,
XOXO Cryst- Simone