It’s that time of year again! As Americans, we have to file our taxes every year. For some, this is an exciting time of year, and others it is dreadful. Regardless of how you feel about taxes, it is crucial you do them on time and accurately.
You don’t want to face legal troubles because you weren’t careful while submitting information to the government. You will also have to pay a fine if you’re audited because of false information.
This might seem obvious, but people try to rush through filing taxes and don’t have all the correct information. Being unorganized can make it harder to file and also lead to putting in false information.
The first thing to do is to collect all the documents you need. For example, your W2 form or forms, 1099 form, Social Security card or cards, banking information, receipts, invoices, and other documents regarding your income.
Also, make sure you have a few hours free dedicated to the filing, so you aren’t rushed or interpreted. When you’re fully prepared, you will be able to file easily, quickly, and accurately.
If you feel that this might be too much for you to handle on your own, the experts at Rotfleisch & Samulovitch say, “a tax attorney can represent clients in matters that a tax accountant cannot, and a tax attorney can represent you in advance with tax planning strategies and advisement all the way through to complicated tax issues and disputes.”
Look for Deductions
A lot of people forget that there are many things you can deduct from your income tax. This is not only for the self-employed but for all of us. Anything that you have paid for that is work-related can be deducted.
Some standard write-offs are work clothes cost, vehicle expenses, home office costs, equipment needed for work like a computer, internet, or software, travel expenses, further education fees, and anything else you bought for your job.
There are other deductible expenses that aren’t related to work also. If you donated to a charity, have a child or children, jury fees, student loan interest, and state sales taxes paid.
If you owe money to the government, these are great ways to lower the amount you have to pay. On the reverse, if you’re getting a return, you can maximize what you will get back.
File and Pay On Time
All employers have to send out by the end of January. Then, it’s your responsibility to file before April 14th. It is very important to file on time, or you cpuld face legal trouble. Don’t wait until the last minute because there could be some unexpected complications while filing.
If you owe money to the government, it’s also essential to pay on time. If you don’t have the funds, it is better to take out a loan or borrow money than not pay.
The Bottom Line
Filing taxes is something we all have to do as Americans. It can be stressful, but if you are prepared and organized, it will be more comfortable.
Also, look for deductibles to increase the amount you get back or decrease the amount you owe. Make sure you file and pay on time to avoid legal trouble.