| Every year many taxpayers can hardly wait to | | | | tells your employer how much should be withheld from |
| receive their W-2s to get them in the hands of their | | | | your paycheck each week. It's always amazed me |
| tax preparer to file their income taxes, to see if they | | | | when I finish up a return for a client and I inform them |
| are going to receive a tax refund. Many use the | | | | that they are receiving a refund and they then treat |
| refund to put away for savings, but the bulk of | | | | me as though I'm a genius or something. It's really not |
| Americans buy large ticket items for their homes. Big | | | | all that folks. I can't believe I'm about to say this but I |
| screen plasma televisions, the latest IPhone, Nintendo | | | | am. The bulk of Americans could put people like |
| Wii or Playstation III. This money is often spent before it | | | | myself, H&R Block, Jackson Hewitt, CPAs and |
| gets in the hands of the taxpayer who filed. They | | | | the like out of business if they would just attend to |
| have already envisioned what they are going to buy | | | | their finances in a responsible manner. The bulk of |
| with the money. | | | | Americans do not have difficult income tax returns to |
| Each year I look forward to this time of year, because | | | | prepare. All they need is some tax software like |
| I run an income tax preparation service from my | | | | TurboTax and answer the questions the software |
| home. I've done so for the last 25 years. Between | | | | asks and before you know it, you're done. |
| January 31st and February 28th is when I see a flood | | | | You see, I believe the IRS has done a fantastic job in |
| of voice messages leaving me their name and | | | | creating fear in the average American taxpayer. So |
| telephone number for a tax appointment. The funny | | | | much so, that the taxpayer is so fearful of making a |
| thing about all this is that when people are told they are | | | | mistake, they won't take deductions that are a little |
| receiving a refund, they get excited. Now you may | | | | border line and would rather pay someone else to |
| say, well they should get excited. Wrong! It's their | | | | prepare their return. High profile cases where the IRS |
| money!! The fact is many people don't realize that if | | | | has seized the assets of Willie Nelson, Sammy Davis |
| you work for an employer and filled out a W-4 form, | | | | Jr, Redd Foxx and other celebrities cause American |
| you control how much of a refund you'll be getting at | | | | taxpayers to say, "Hey, if they'll go after the famous |
| the end of the year, if any. | | | | people, they'll surely come after me if I make a |
| This control is called ALLOWANCES. It's the number | | | | mistake. |
| you chose to insert on the W-4 form. That number | | | | |