Filing taxes is something we all have to do, but that doesn’t mean it’s not stressful sometimes. There are a lot of numbers and forms you have to fill out. There’s the pressure of if you fill them out incorrectly, you could get into legal trouble or audited.
There are many platforms you can use to assist you or contact an accountant to help you with some questions. Still, it can be confusing for some, especially if you own a business or have multiple jobs with different tax forms.
We’re going to give you some tips on filing your taxes this year.
1. Get the Most from Your Taxes
The government doesn’t want you to know this, but there are many ways to reduce what you owe in taxes or get more from your refund. You just have to know what those things are.
Some deductible items would be if you have children you support, donate to charity, bought school supplies as a teacher, and any work-related expenses. These expenses can be a computer, internet bills, work clothing, miles on your car, or travel costs. It would be best if you kept all the documentation of your purchases in case you need to show proof of the costs.
If you’re a business owner, you can also do income splitting if you work with your spouse or children. The experts at Rotfleisch&Samulovitch state that income splitting is a tax planning strategy where one taxpayer moves a portion of their income to another taxpayer who’s taxed at a lower rate.
This is legal and is an effective way to get yourself into a lower tax bracket, which will minimize the taxes you have to pay.
2. File on Time
Some people get nervous about affording to pay their taxes every year. You might think that just not filing will solve your problem. That’s not true, and you should always file on time no matter what the circumstance is.
However, it’s good to know that you can file for an extension. It’s also possible to take out a personal loan to pay your taxes. Try to find a loan that has a low-interest rate and stay on top of payments.
If you don’t file on time, you can receive a penalty, where you owe even more than you did before. You don’t want to find yourself in trouble with the federal government because of taxes.
3. Be Organized
Having everything you need at an arm’s reach before you sit down to file your taxes can make the whole process less stressful and more manageable. It would help if you started organizing your things in January, at the start of the new tax year.
Have a file for receipts, invoices, your paychecks, and any other valuable documentation for tax filing. Or even better, scan them and save them to your computer, so you don’t have to worry about losing them. You can keep a tally of all deductible items, so the math is already done when it comes to the next year.
Also, collect your tax forms, your identifications, a calculator, extra paper, and a writing implement. Make sure your computer and phone are fully charged before you start as well. Choose a day that you have plenty of time to file, so you don’t have to rush or stress about time.
The Bottom Line
Filing taxes doesn’t have to be a stressful task. There are many ways to be prepared for the tax season! Some key things to remember are to deduct as much as you can, file on time, and be organized.
There are many things you can deduct to get extra money on your returns or lower what you owe. Depending on where you live, there are different deadlines. Check when the date you need to file by is in your zone. Being organized will make the experience less stressful for you!
Article Submitted By Community Writer