You may be minding your own business, trying to make ends meet when the government comes knocking, asking for what it is due. Suddenly, you feel underprepared and discover that you have been living under a rock, completely ignorant about the new rules that the IRS has recently enacted. This scenario is a reality lived by millions of Americans every year.
However, filing your taxes does not have to be such an anxiety-inducing nightmare! In fact, you can save tons of money and time by just employing some simple tips. Are you interested in knowing more about them? Just keep on reading.
Be Vigilant
Do you know what qualifies as the best way to save time when filing taxes? It is to stay on top of things, of course! If you keep all year lazing around and not giving a care in the world about tracking your income and expenses, you will probably feel the way in over your head when tax season is around the corner. Bookkeeping is indeed a boring way to pass the time, but saving important bills and invoices can greatly help you cut the time you take to file your return in half.
Doing so is particularly crucial if you are a business owner. Another helpful tip is to avoid mixing your personal and business accounts, as separating them will save you much headache down the line. When it comes to saving money on taxes, there is no better way to do this than to keep track of your expenses since you will be able to use various deductions, such as dental and medical expenses and home office costs.
Leverage Technology
Filing your taxes is not as complicated as it used to be in the 90s; you now have a wide array of tech solutions to make the process a breeze. The folks at keepertax.com point out that tax software has developed by leaps and bounds, becoming so user-intuitive that even average taxpayers have no problem using it. So why stick to old-school, counter-productive methods when you can do it the easy way?
Based on your tax needs, you will undoubtedly be able to find software that is to your liking. Some tax programs are also available as smartphone applications, enabling you to calculate accurately and file taxes on the go! However, if you run a company, you may need to invest in a more feature-packed cloud solution.
File Your Taxes Online
If you are not a fan of hiring a CPA and do not want to invest in tax software at the same time, there is another cost and the time-efficient solution you can opt for: e-filing. Instead of dealing with dozens of different forms and feeling confused about what information you need to include, you should try filing your return online. The IRS makes e-filing the clear winner when it comes to accessibility, as it’s Free File Fillable Forms are available for all and come with no costs at all!
Another major advantage of filing your return through this method is getting notified about any mistakes in your form. For instance, if you enter the wrong SSN, the IRS will immediately send you a notice, enabling you to quickly correct your error. In case you are eligible for a tax refund, you get to also receive a direct deposit in your bank account instead of relying on snail mail.
Hire a CPA
If you have always been about managing your finances yourself, it might be hard to know when you should ask for help. For most families and business owners, hiring a tax preparer or a CPA (certified public accountant) can be a lifesaver. Even though consulting professionals entails paying their fees out of your pocket, they will save you a lot of time and may be able to find a few extra write-offs you didn’t know you had.
To choose a CPA, make sure that they have the right certifications and know about your business field. After you contact one, you must agree on a payment structure that suits you both. Most CPAs operate on either an hourly or project basis, so ensure that you have no qualms about their payment structure before you end up hiring them.
Filing your tax return does not have to be a recurring dilemma, not to mention that it should not take days to finalize! By being more organized and meticulous, you can save time and money when calculating and filing taxes. The above guide should be of great help during the upcoming tax season, so make sure to give our suggestions a go and enjoy all the extra savings you will be able to amass!
