Tips to Make Filing Your Taxes Easier and More Affordable
You will probably find it pretty difficult to find someone who loves filing their taxes. While getting a refund makes it worth the stress, things like figuring out how to file taxes with a paystub and how many deductions you are eligible for can be daunting.
Whether you work for someone else, or yourself, or if you have a more complex tax situation, you aren't the only one who dreads tax time. What makes it even worse is the drawer full of crumpled-up receipts on your desk.
While the entire process can make your head spin, here are some tips to make tax filing easier and more affordable.
Look into Using Free Programs
If you made less than $72K for 2020, you could use the Free File Program offered by the IRS. This amount may change every year, but they usually offer some type of free-filing option. It is just as effective as the programs you pay for, and it's free! Talk about a win-win scenario.
You can even use it to request an extension at no cost to you, if you need more time to file your taxes past the deadline.
If you receive a standard W-2 and don't have any special tax considerations or needs, the free option will have everything that you need. It is free for these people only because it isn't set up to handle more complex tax situations.
You can also access free tax documents through the IRS website. While this is true, it can take some time to receive them.
Get and Stay Organized
There's no such thing as getting organized too soon for next year's tax season. You need to make sure you keep your paper documents in a single location. Purchasing a file folder or box is a good idea. It is also a good idea to keep your digital documents in one location on your computer, hard drive, or cloud storage.
Some of these documents include your 1099 or W-2 forms, retirement funds, and other records. Having everything organized and ready to go at tax time will make your life a lot easier.
Schedule a Professional Consultation
If you are dealing with a more complex tax situation, such as multiple investments or self-employment, or if you don't have the time or desire to handle your taxes on your own, hiring a tax professional can be beneficial.
When hiring this professional, put time and effort into finding the right person for the job. You can do this by getting to know your options and reading reviews from past clients.
Also, when you hire a professional, you can feel confident they have the latest tax code information and will be able to ensure that your taxes are done properly, regardless of how complex your situation may be.
Are You Ready for Tax Time?
Are you ready to file your taxes? If not, better start getting organized. When you have everything organized and ready to go, you will find everything is easier and less stressful at tax time.
As you can see from the information above, you can do more than a few things to save money and time on your taxes. Keep this in mind to help ensure you have the best outcome possible for your tax situation. Being informed and knowing what steps to take are the best ways to ensure that your taxes are handled easily and that you aren't extremely stressed along the way.
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