Six Tips To Make Filing Your Tax Return A Breeze
Tax time is usually the time of year when you hear people complaining the most about money and the government taking their slice of the pie.
We all hate paying taxes, but none of our governments can function without tax revenue. Though it is painful, paying taxes is part of our civic duty, but it does not need to be difficult. Here are some tips to make filing last years taxes a breeze.
6. Keep Good Records All Year
You have no idea how much money you are leaving on the table when you do not maximize your tax deductions. The first thing you need to do is make sure you are keeping all of your receipts and expense reports. You should buy an expandable folder or a filing cabinet to hold all of your receipts and create a computer spreadsheet to keep everything organized. It will be well worth the effort when the time comes to add up all of your expenses and deduct them from your liability.
5. Refer To Last Year’s Return
If you have a question about how to categorize a deduction or how to track your income, all you need to do is check last year’s return and see how you did it previously. This is another area when having good recording keeping skills and a safe place to store important documents comes in handy. Even if you had a professional accountant do your return last year, you should still keep it handy so you can refer to it whenever you have a question about how to proceed.
4. Use Online Tutorials
This is the age of the Internet and online video tutorials. With a simple Internet search, you will find all of the information you need to understand how your taxes work and how to file them correctly. The most popular online video hosting websites have channels that are run by accounting firms that offer solid advice for tax payers. If you use a computer program from a company like Turbo Tax, you will be walked through a step by step tutorial as you fill out all of the relevant information.
3. Don’t Use Cash
If you want to get the most from filing your taxes, then try to limit how often you use cash. You can find specials on personal checks online that you can use to keep your checkbook filled. When you pay for things in checks, you have a legal document that you can use as a deduction on your filing. This will be extremely important if you happen to audited. The IRS will require proof of your deductions in the form of receipts, and if you have been paying in cash, you may not have them. Don’t take the risk. Being audited is terrible, and not having the proper documentation would just make it worse.
2. Use Online Filing Resources
The IRS is getting pretty sophisticated with its website and it even offers you the chance to file your taxes online for free. There are also several other filing websites you can use to file your federal return for free. These online resources will walk you through the entire process and make sure that you do not leave anything out. If you choose a paid service, some will guarantee their accuracy and defend you in case of an audit.
1. Hire A Professional
The absolute best way to make filing your taxes a breeze is to hire a tax professional to do them for you. Taxes are hard and you have a million other things to do. Let someone else do it.
Every citizen has to file income tax returns whether they generated an income or not. Since you have to file a return, you should do everything you can to make the process as painless and easy as possible.
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Category: Taxes
