Some Good Reasons to File Your Taxes Early The

In this issue:
December 2015 Issue
• Some Good Reasons to
File Your Taxes Early
• The Retirement
Dilemma
Now!
Dworken, Hillman, LaMorte & Sterczala, P.C.
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Some Good Reasons to File Your Taxes Early
By Rob Vieira
Filing for Financial Aid
Tax season is upon us. Some people dread this time of year and
procrastinate to the last couple of weeks or days till the tax return
is due. As a taxpayer there are many advantages to filing your
return as early as possible. One of the easiest ways to get your
tax return done early is to start organizing during the year and
provide your tax documents to your accountant as soon as possible.
Fully completing the tax organizer you are provided reduces
follow up questions and allows your return to be completed
efficiently. Here are 5 reasons to file your taxes early:
If you are filing Free Application for Federal Student Aid
(FAFSA) or other forms for college aid, you will need your tax
return. Some aid programs have a limited amount of funds
available each year so the sooner you file the better the chance
you will receive the funds you need. Also, knowing how much
financial aid you will be receiving can help plan how much you
will have to pay for your child’s education.
Avoid the Cost of Filing an Extension
Reduce the Risk of Identity Theft
Getting all the necessary documents and information to your
accountant early will also help avoid the extra cost of filing an
extension. Sometimes a major event will happen during the year
As you are waiting for your W-2 or any number of Form 1099’s
you might receive, so is an identity thief. They are hoping that
you don’t file your tax return early because if the thief somehow
has illegally acquired your social security number it gives them
time to file a false tax return. You will not find out that someone
has used your social security number to file a tax return until you
attempt to file your tax return and it gets rejected. The process to
resolve an issue of identity thief with the IRS can take up to one
year which means a delayed refund…and a lot of hassle.
continued on page 2
The Retirement
Dilemma By Paul Sterczala, CPA
I hope you had a chance to read our 25th Anniversary piece
in last month’s newsletter. For me, it confirmed what my
old football injuries have been telling me for years – we’re all
getting older.
Receive Your Refund Sooner
If you’re getting a refund, why have the government hold on to
your money? That’s money you could use to help buy a new car,
go on a vacation, pay down some debt, or invest. Not only will
filing your return earlier mean a quicker refund, but if you also
authorize direct deposit of the funds, you’ll have the money even
sooner and run less risk of a check getting lost.
Time marches on, and I will soon be faced with that difficult
decision which you may be experiencing – where should I retire?
Many factors to consider – weather, health care needs, family
(i.e., children and grandchildren), and of course, financial
matters – especially taxes.
Know Your Tax Liability
Climate, health, and family issues are personal, and must be
individually assessed and ranked in importance. Taxes,
though, concern us all, and while they may not dictate where
to retire, current tax facts are crucial in deciding where we do
not want to be. How crucial – and what taxes in particular
are most relevant – must be considered on a case by case basis.
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So you have your taxes done early and unfortunately you owe the
federal or state government money for one reason or another.
Maybe your employer didn’t take out enough taxes or you had a
lot of capital gains for the year. Knowing your tax liability early
can help you. You have up to April 15th to invest in an IRA
which could reduce or eliminate your tax liability. It also gives
you time to pay the balance due. You can file your tax return
early but the payment is not due until April 15th.
1990
YEARS
2015
Dworken, Hillman, LaMorte & Sterczala, P.C.
Certified Public Accountants / Business Consultants
Four Corporate Drive, Suite 488, Shelton, CT 06484
(203) 929-3535 • www.dhls.com
continued from page 1
Some Good Reasons to File Your
Taxes Early
and you may need additional documents,
which may take time to get. This is a good
reason to communicate with your
accountant and file early to help avoid long
delays. Many times extensions are
unavoidable because you may be waiting
for Schedules K-1, or are just unable to get
everything ready in time. Keep in mind
that even though you have to file an extension and it is expected that you will owe
the IRS, you still need to make the
expected tax liability payment with your
extension or you could face penalties.
I’m sure you may know of other advantages
of filing your taxes early. Take the opportunity
to get your tax filing requirements done as
early as possible, that way you are well
prepared for April 15th and there are no last
minute surprises. If you have any questions,
please call us at 203-929-3535. 䡵
continued from page 1
States With The Highest Top
Income Tax Rate
California
New Jersey
Hawaii
New York
Indiana
Oregon
Minnesota
Vermont
State with No Sales Tax
Alaska
New Hampshire
Delaware
Oregon
Montana
States Which Tax Only Interest
and Dividends
New Hampshire Tennessee
States With No Income Tax
Alaska
Texas
Florida
Washington
Nevada
Wyoming
South Dakota
The Retirement Dilemma
My intent is to provide you with some
tax information to assist in your decision
making process. Please note that in
each category I have listed the states
in alphabetical order, not how well
(or poorly) they rank. Spoiler alert:
Connecticut doesn’t fare too well.
10 Most Tax Friendly States For Retirees
Alaska
Louisiana
Arizona
Mississippi
Delaware
Nevada
Florida
South Dakota
Georgia
Wyoming
10 Least Tax Friendly States For Retirees
New Jersey
California
Connecticut
New York
Oregon
Minnesota
Montana
Rhode Island
Nebraska
Vermont
States That Tax Social Security
Colorado
Nebraska
Connecticut
New Mexico
Kansas
North Dakota
Minnesota
Utah
Montana
Vermont
Missouri
West Virginia
State With Gift Tax
Connecticut
States With Estate/Inheritance Taxes
Nebraska
Connecticut
New Jersey
Delaware
New York
Hawaii
Oregon
Illinois
Pennsylvania
Indiana
Rhode Island
Kentucky
Tennessee
Maine
Washington
Maryland
Vermont
Massachusetts
Minnesota
States With Lowest Property Taxes
Michigan
Alabama
Arkansas
New Mexico
South Carolina
Delaware
West Virginia
Hawaii
Louisiana
Wyoming
States Exempting Pension
Income Entirely
Illinois
Pennsylvania
Mississippi
States Generally Taxing Most
Pension Income
Alabama
Minnesota
Arizona
Nebraska
California
North Carolina
Connecticut
North Dakota
Idaho
Rhode Island
Indiana
Vermont
Kansas
Washington
Massachusetts
West Virginia
State Sales Tax of 7.5%
California
States With Highest Property Taxes
Connecticut
Nevada
Illinois
North Dakota
Michigan
Texas
New Jersey
Vermont
New Hampshire Wisconsin
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State Sales Tax of 7%
Indiana
Rhode Island
Mississippi
Tennessee
New Jersey
Dworken, Hillman, LaMorte & Sterczala, P.C.
Certified Public Accountants / Business Consultants
Four Corporate Drive, Suite 488, Shelton, CT 06484
(203) 929-3535 • www.dhls.com
continued from page 1
The Founding Four
The Retirement Dilemma
State Sales Tax Over 6%
Minnesota
Washington
(6.875%)
(6.5%)
Nevada
Connecticut
(6.85%)
(6.35%)
Arkansas
(6.5%)
DHL&S Family News & Events
Lowest Tax Per Gallon of Gas
Michigan
Alaska
(37.18)
(30.65)
New Jersey
Texas
(32.9)
(38.40)
Louisiana
Missouri
(35.7)
(38.41)
Alabama
South Carolina
(38.41)
(35.15)
Tennessee
Oklahoma
(39.80)
(35.40)
䡵
Please give a hearty welcome to our new accounting and auditing staffer,
John Paul Andrich.
䡵
On November 12, nearly 150 clients, friends and DHL&S family gathered at
Shelton’s beautiful Il Palio Restaurant to celebrate our 25th birthday. All four
of our “founding fathers” joined in the festivities. A good time was had by all,
it appears.
Highest Taxes Per Gallon of
Gasoline (In Cents)
Pennsylvania
(70)
New York
(64.39)
Hawaii
(63.50)
Washington
(62.9)
California
(60.75)
Connecticut
(59.26)
Hopefully, you find these tax facts
useful as you ponder where and when
to retire. They helped me (along
with sitting in traffic). As always,
please contact your tax advisor at
DHL&S. We may be able to help
with some tax avoidance strategies. 䡵
Happy Holidays!
For more information on how we at
DHL&S can help with these and other tax planning
and financial opportunities, please contact your
tax specialist at 203-929-3535,
or visit our website at www.dhls.com.
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International
Taxes
Advisory
Services
Health Care
Personal
Finances
Bookkeeping
Services
Accounting
and Auditing
Employee
Benefits
Non Profit
Valuation and Real Estate
Litagation
For more information on how we at DHL&S
can help with these and other tax planning and financial opportunities,
please contact your tax specialist at 203-929-3535,
or visit our website at www.dhls.com.
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Fraud
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Taxes
1990
YEARS
2015
Dworken, Hillman, LaMorte & Sterczala, P.C.
Certified Public Accountants / Business Consultants
Four Corporate Drive, Suite 488, Shelton, CT 06484
(203) 929-3535 • www.dhls.com