Tax Filing Made Easy
Does talk of tax season scare you? Well, you’re not alone; many individuals hate this time of year because of the paperwork involved. However, it doesn’t have to be that way. Preparing your taxes can be simple and stress-free if you do footwork on the front end. All it takes is a little time and a lot of organization. Let’s take a moment to discuss a step-by-step guide that will help you with the filing procedure.
Step 1: Collect Your Documents
Start by collecting your documents. This includes your 1099s, W-2′s, receipts for charity as well as the interest statements for your mortgage. You should also gather receipts for deductions such as childcare, home improvement and education costs. If you are unsure or have any questions about any of these things, then make sure to keep the receipt or document on file until tax time rolls around.
Step 2: Be Aware Of Important Dates
You have to file by April 15. All of your investment interest and income forms are usually mailed to you by the 31st of January. Make sure you watch your calendar. If you haven’t received your statements by this time, then you should consider calling the necessary people so as to make sure you receive your paperwork In time.
Step 3: Organize Your Statements
Purchase a few office folders that can hold your documents. In one of your folders, place all of your paperwork that has to do with income such as 1099s and W-2s. In another file, place all of your deductions paperwork such as property taxes and interest on student loan. Your last file should contain your receipts for deductions that are not in statement form, such as home improvement costs and medical bills.
Step 4: File Your Taxes
When your documents are organized, then it’s time to file your taxes. You may choose to file them on your own. In this case, programs such as Turbo tax can guide you through your form. However, if you would feel more comfortable with allowing someone else to do it for you, then you can search for a reputable tax service professional to take care of it for you. The IRS even waives their tax services fees for certain individuals based on age, income levels as well as other factors.
Filing your taxes does not have to be difficult. However, ultimately you are the one who determines how smoothly the process will go. So save your receipts, be aware of all of the important dates, know which forms you are In need of and make sure that you know whether you are prepared to file on you own or call In the professionals.