Tips for the Upcoming Tax Season

Taxes are one of those subjects that make most people cringe. However, it is easier than ever to do your taxes yourself and many place are willing to help you—for a fee of course. No matter how you plan to file your taxes this year, consider these simple tips to help make tax season less painful for you and your pocketbook!

E-filing is best –

Not only does e-filing save trees, but there are other benefits too. If you use tax software, you will have all the forms you need right there for you, plus most of these programs check your work for you to make sure you do not make any mistakes.

Review your filing status –

Make sure you are filing correctly as not only can it make a difference in how much you pay or save, but if you get it wrong you may be audited. Your status shows the IRS how you want to be treated and opens up the different credits you are allowed to take.

The AGI is key –

Most of the different taxes you pay and credits you get are based on your AGI (Adjusted Gross Income). Make certain you get this number right because so much is riding on getting this correct.

Exemptions can lower your obligation –

Make sure you are claiming all the exemptions you qualify for and you will pay as little as possible. Exemptions can change from year to year, so make sure you review them before you sit down to do your taxes.

Credits can sometimes mean a refund –

A credit not only is subtracted from your obligations, but can sometimes add to your refund. Check out the different credits you could qualify for and make sure you take advantage.

Itemizing deductions can save big money –

It is easier to take the standard deduction; however, if you have a complex tax situation you may save more by itemizing your deductions. Look at both sides and see what will work best for you.

Audits aren’t as scary as they seem –

Sure they are frustrating, but audits simply mean that you may have done something incorrect. Most of the time the auditor will help you correct the problem and you will have to pay any discrepancy.

You can file an extension –

If you can’t get to your taxes in time, the IRS understands. File for an extension and get the time you need. Even if you can’t pay the tax bill, you may be able to set up a payment plan.

Hiring an accountant may be the best option –

While there are expenses involved, hiring an accountant may be best. If you find your taxes confusing and are afraid you can’t do your best, it may be best to go ahead and hire someone to help you with your taxes.

Now it is your turn. You have any special tips. Please share in the comment.