United States payroll tax make five errors

The headache, in addition to using tax software or tax experts to help me out, taxpayers had better understanding of the relevant provisions and past tax errors, so as not to give the Federal Government and State Governments have paid too much tax or causing unnecessary trouble.

GOBankingRates.com personal finance website recently reported that salaried people who often do not understand the tax laws across the United States, each year to pay thousands of dollars in income tax. Payroll tax in order to assist the legitimate tax-efficient and successful completion of tax returns, the article lists the five most overlooked errors.

1. the failure to maximize non-cash charitable donation deductions

Jackson has served on the IRS accountant (Sherry Peel Jackson) that many full-time workers do not know make the best use of "non-cash charitable donations deductions" (Noncash Charitable Contribution Deductions) provides benefits.

Salaried people who work on this project is usually only $ 500 deduction, because if more than $ 500, it is necessary to fill out form 8283, many provisions or because they do not know, or would fill in trouble and missed opportunities to increase deductions. Jackson estimated that a payroll tax man deductions that may therefore understated by thousands of dollars.

2. ignore the light tax employer-provided benefits

Tax services professionals Eckstein (Michael Eckstein) remind workers when the employer, pay special attention to employer-provided benefit plans, which can often bring substantial tax benefits.

Eckstein said that if very lucky to meet companies that offer employees full benefits plan, though sometimes have to bear some of the costs, but the tax benefits received by more.

This type of tax-efficient methods include:

Transport: depending on employer-provided benefits vary, some covering all costs associated with the transport, even bicycle costs. Transportation deduction reduces taxable income.

Group insurance: some employers to take care of employees, provides a full range of group health insurance, although the employee may have to bear part of the costs, but these costs can be deducted to reduce taxable income.

Flexible spending accounts (Flexible Spending Accounts, FSA): some employers for the introduction of FSA, employee salary deposited FSA, for items not covered by Medicare, including day care, health care services, drugs and prescription drugs. FSA amounts not included in income before taxes.

Current annual limit maximum amount that can be deposited in FSA is $ 2,550, most of the FSA requirements unspent amount during the year and cannot be incorporated into the next year, even if consent can be incorporated in the next year, generally only up to $ 500. So carefully calculated annual amount deposited into the FSA's employees, so as to avoid losses due to unspent.

3. ignore the retirement account contributions

Payroll tax tax mistakes people most likely to commit, just do not know can employees in the employer's retirement account contribution (contribution), the items categorized as a tax deduction, is even worse, is not involved in any retirement account plan.

With any luck, employers offer 401 (k) and 403 (b) retirement plan, you can get the most out of tax concessions. In 2015 and 2016, workers participating in such retirement scheme, allowing the maximum contribution limit is $ 18,000, over the age of 50 may also take the additional $ 6,000. These contributions you can deduct at tax time.

If the employer does not provide retirement plans, consider opening a traditional individual retirement account (Traditional IRA) or Roth (Roth) account, 2015 and 2016 to allow maximum tax deductible contribution limit is $ 5,500, persons over the age of 50 for $ 6,500.

Salary is not high, but can deduct the contribution amount, can also be used "retirement savings contribution tax credits" (Retirement Savings Contributions Credit, RSCC), get a percentage of the tax relief.

For example, Married Filing Jointly, if their income is $ 35,000, according to regulations, earning less than US $ 36,500, tax credits to apply for RSCC is IRA contribution 50%. Therefore, tax, remember to deduct IRA contributions to $ 1,000, get "adjusted income" (Adjusted Gross Income and AGI) $ 34,000, as well as to declare tax refund $ 500.

4. forgot to review salary withholding

Most workers do not understand the effect of wage withholding income tax, that do not take the W-4 table (employee withholding tax certificate) made a pre-fuduoyu of the income tax.

So when you fill in the W-4 table, experts suggested rule of thumb is, by wage withholding amount up to 10% per month. In addition, depending on the family situation changes during the year, examine the W-4 table and, if necessary, you can adjust the amount of withholding income tax.

5. neglect the importance of carefully check refund data

Tax consequences of errors, some more tax there is to spend more time and energy to make up for mistakes.

Prone to mistakes, wrong social security numbers, forgot to notify the social security administration after marriage change names, or false column family, which can attract IRS attention.

In addition, padded charitable contributions or exaggerate too much space used by the Home Office, will step on the red line to the IRS.

There is the possibility of error is the wrong amount of income, no doubt, this is the place where taxpayers are likely to make a mistake. So, the safest approach is sent out before tax, trouble to check it again.