10 Best Tips and Tools for the Tax Season
Whether you like it or not, it’s time for taxes. Prepare and file your tax return with less stress using these top 10 tips and tools every tax declarant should know about.
10. Submit documents as early as possible.
The sooner you file your tax return, the better. Not only will you get rid of this chore, but you will also receive your refund sooner ( or you can save the amount you owe ), and you will have more time to solve any problems that may arise between now and April 18 or April 19. (Yes, we have a few extra days to file this year , but don’t wait until the last minute.) Also, the sooner you apply , the less time identity thieves will have to file a fraudulent claim in your name .
9. What to do if a thief steals your identity and sends your return
Tax identification fraud is more common than you might think. This happened to our own Eric Ravenscraft , who said that the process of fixing everything with the IRS was relatively painless. If this happens to you, you will have to contact credit agencies and the Social Security Administration and be on the lookout for misuse of your identity , and you can also file an Affidavit of Identity Theft (Form 14039) with the IRS if you believe someone is then they stole your identity.
8. How to avoid auditing
You may be more afraid of being screened by the IRS than someone else filing your tax return. Getting an audit isn’t as bad as it sounds (trust me, I was there), but it helps if you take a few steps before applying so that the audit isn’t a big problem . Stay organized and consider protecting tax audits if you have unusual income, such as deductions above average . Keep an eye on these red flags to know if there is a chance that you will be tested .
7. Make sure you receive all royalties to which you are entitled.
Fear of verification should not deter you from the deductions to which you are entitled . This includes student loan tax deductions , tax-free medical expenses (including your special diet ), military service tax deductions , job search expenses, and other often forgotten deductions . In particular, do not miss out of sight IRS Saver’s Credit loan if you meet the requirements: this is similar to what the employer expects to your retirement savings.
6. Beware of tax problems if you are self-employed or working from home.
If you are self-employed, you can deduct more things, which is great, but you also have to pay indicative taxes throughout the year, which is not good. If you are self-employed, remember these points that you can write off and learn the basics of taxes for freelancers . If you work from home, whether you are a homeworker or in your own business, there are additional rules you need to know .
5. Check out the tax rules for married people.
Taxes are also more enjoyable when you are married. Just kidding. Some couples do receive a tax penalty upon marriage , so be aware of this possibility. With this tool, you can find out if you are getting a marriage penalty or a tax bonus, as well as find out how taxes for married couples work with our guide . Also, if you or your spouse has student loans, consider filing your tax return separately .
4. Plan your tax refunds wisely
Millions of people receive tax refunds every year, on average over $ 3,000. This may sound like “free money”, but it really isn’t. It is the IRS that gives you money back. Use refunds to tidy up your financial home, for example, pay off a debt or finally start saving for retirement .
3. Decide whether you file yourself or hire someone to do it for you.
If you do not sort out taxes by article, submitting documents will not be difficult. In fact, paying taxes yourself can give you more control over your financial future . However, the more complex your tax return is, the more you should consider hiring a tax pro. So, then, here’s how to find a good tax professional .
2. Organize your tax documents
Whether you file your tax return yourself or have someone else prepare a tax return for you, you will need to do the paperwork. I use a multi-pocket tax folder like this to organize tax documents throughout the year, but if you don’t have complex returns, you can use a three-folder system to store your income documents, deduction receipts, etc. D. and investment reports.
1. Store files electronically and use suitable software
Electronic filing is the fastest and easiest way to get your tax return back to the IRS. Luckily, there are tons of apps to help you pay your taxes , including the readers’ favorite tax preparation tools, Mint and Lifehacker. However, be careful with your choice. On my return a few years ago, I discovered a serious discrepancy between the H&R Block and TurboTax . No matter what software you use, it can be helpful to double-check your taxes . And then you don’t have to think about taxes until next year.
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