Essential Tips For The Coming Tax Season

Essential Tips For The Coming Tax Season Taxes have been around for a long time. And they look like theyre here to stay, at least for the foreseeable future. That doesnt mean that doing your taxes has to become an annual nightmare. Here are some tips to make the process a little easier. File Electronically Calling the taxman directly is a surefire way to lose your sanity. Calls are rarely taken, and even if you do get through to somebody, these arent people who are interested in customer service. (Hint: its because youre not a customer). Thats why many people find it easier to fill out their tax return online. Thankfully, the online system is much quicker and easier to use. There are also apps that can help you fill out your tax return, like Mint. Just be sure to check your tax return manually. The software can sometimes produce conflicting results. Organize All Tax-Related Paperwork Its always a good idea to keep any tax related papers well organised in folders. If your tax returns are complicated, use a folder with many pockets in it so that you can organise the paperwork into sections. If your tax return is simpler, you can organise your paperwork by tax-year. Remember to keep all of your invoices, tax-deductible receipts and summary of accounts. Get Legal Advice If you do find yourself getting into problems with the tax authorities, be sure to get legal advice. Tax attorneys, like those at MCC4Tax, understand the tax code. And this can be a serious problem for a lot of small business owners and people that are self-employed. The code itself is a minefield and can often result in unfair prosecution by state authorities. Think About Hiring An Accountant Many self-employed people avoid hiring an accountant to do their tax returns. And this is understandable, given how expensive accountants can be. But there are good reasons for hiring an accountant. The first reason is peace of mind. Accountants are far more experienced in matters of taxation. And theyll be able to calculate better the amount of tax that you should be paying to the state. But they may also be able to save you money in the long run. Experienced accountants will be able to work out if youre overpaying on tax and they may be able to save you enough money to pay for their own fees. Use Your Tax Refund Wisely Each year millions of people in the US get a tax refund. On average the IRS pays out $3,000, which is a lot of money. Remember however that this is money that they took from you in the first place. Its actually money that you earned and not an extra paycheck. So with that said, its probably a good idea to use that extra money wisely. Its an opportunity to reduce your debts or invest in something that will make you better off in the future. Watch Out If You Work From Home Make cure that you understand the extra rules that apply to people who work from home. Image Source; Image Source; Image Source