It’s tax season and that means now is the time to pull all your financial paperwork together so that you can file by the magical April 15th deadline.
The following are seven tax season tips you can use to make sure that your paperwork and taxes are in order:
- Slow down with your math. Don’t rush things. Check, double check, and check again. Not only could you end up paying more taxes if you’re not careful, you could miss valuable deductions that could save you thousands more.
- Do it alone. If you’ve bought a home, taken money from a 401k, or suffered a financial loss, it’s a wise idea to hire an accountant. There are ways for windfalls and losses to be calculated so that you don’t take a financial hit.
- Not listing all of your income. If you’re not sure how much you made last year, say you’re a 1099 contractor, it’s best to contact the IRS office nearest you and ask for a printout of your income They have all of these figures listed for you to review anytime you want.
- Filing the incorrect status. If you married or divorced, be sure to include this information. It could be to your benefit. Further, filing as head of household has certain tax benefits you won’t want to ignore.
- Incorrect contact/identification. Make sure your address, social security number, and other information are correct. Make sure to check spelling and digits twice, then check them again to make sure you didn’t transpose a number, etc.
- Not taking all your deductions. From charitable contributions to the birth of a child, don’t leave money on the table. Make sure you research the deductions you may qualify for and then to fill out the proper paperwork for each deduction.
- Missing the deadline. This can add penalties and fees to your taxes if you owe. Thus, if you can’t fill out your papers by April 15th, file for an extension by using Form 4868. This will give you until October 15th to get all of your paperwork together and file without any penalties being added.
Wondering how these tax season tips fit into your financial plan? Contact Superior Debt Relief Services at 866-896-7616 and we’ll be glad to help you understand the ways you can use these to your advantage.