When it comes to filing taxes, nothing is a one-size-fits-all solution. Some tips may apply to some situations, while some cannot be applied at all. It is just a matter of studying the whole process and getting some good advice from those who are experts at the subject.
Here are some easy to understand tips for the first timers that will surely lessen the hassle of tax filing:
- File your own tax. Many use the word ‘intimidating’ to describe their first experience with filing their personal taxes. Today’s new system of e-filing has made it easier for everyone. Putting it simply, it will be just like completing a response form online. All you have to do is look for the right program to suit your needs.
Some advantages to using the e-filing system is that it usually takes only an hour to complete the whole process from start to finish. Another advantage is that checks for tax refund are returned quicker as compared to filing the traditional hard copy way.
- Take it one step at a time. Breezing through your taxes does not mean doing it as quickly as you can. This is okay if you are a professional but the first timers should take their time and read everything clearly. Errors in the information you enter will only result to more hassle on your part.
Even if you are using an e-filing program, they still take you through the same steps. All in all, utmost care should always be taken when filling up any form concerning your taxes, since this will be sent to IRS and reviewed before verified.
- Be careful of tax preparers. The services of a tax preparer are a blessing for every taxpayer who can afford their fees. Yet, before you enroll in such a service, make sure that they really know how to handle your taxes competently.
Not all are truly competent enough and may even give you a so-so quality of service for your money. Common errors of the incompetent tax preparers are clerical errors that will certainly ring a bell with the IRS.
Errors in your tax return may cost you to pay an additional sum for your tax or even give you penalties for the mistakes and doubtful deductions found in your tax return.
- Keep that receipt! Many make the mistake of not filing receipts. Keep all the receipts of everything you have paid for so that when tax season arrives everything is made easier to calculate.
A great tip is to sort among your receipts which can be counted for valid tax deduction so that you have solid proof for the said deductions.
This doesn’t have to be complicated, even an old shoebox will do for keeping your receipts.
As stated at the start of this article, there is no all-around solution for the filing dilemmas that the first timers experience with taxes. Tax filing can be a complicated process when unarmed. Yet, with the help of these tips, filing your tax returns successfully will not be difficult at all.
Irina Webandyou is a finance advisor for eMoneyBuddy Logbook Loans. She writes articles about finance, business and debt consolidation.