By now, it’s likely you’ve received all the necessary tax paperwork required to complete your tax return. Have you found yourself staring at the pile of documents, wondering, “What do I do now?” Many individuals feel anxious about the idea of filing their taxes independently, which is why post offices typically overflow on April 15 with people trying to complete their forms. It’s human nature to procrastinate on tasks we’d rather avoid!
If you’re considering tackling the task of filing your taxes on your own, here are five helpful hints:
FREE FILING
Did you realize you could file your taxes at zero cost? If your income is less than $64,000 per year, you can take advantage of the IRS’s free filing software to easily calculate what you owe or what you’re due. This option is particularly beneficial for young, single professionals who don’t own a property. If your earnings surpass $64,000, you can also file for free, but will require more financial proficiency and a better understanding of numbers.
MAXIMIZING TAX DEDUCTIONS
Often, when it’s time to file, individuals overlook potential deductions that could chip away at their total tax bill. It’s crucial to acknowledge these, as they can reduce your overall tax liability. This is where it might be beneficial to call in the experts. In my experience, I always rely on Rudy Gabsi to ensure I’m accounting for all deductions accurately.
My husband and I make it a habit to review our credit card statements at year-end, highlighting all tax-deductible purchases and categorizing these accordingly. We also tally our total household spend as we can claim a portion related to our home office.
Don’t postpone your taxes this year. Use these strategies for a smoother tax filing experience.
KEEP BUSINESS AND PERSONAL EXPENSES SEPARATE
If you’re working from home, it’s advisable to maintain dedicated credit cards for personal and business expenses. Many freelancers mistakenly commingle their expenses, which complicates tax filing and often results in omitted deductions.
SEEK FREE TAX ASSISTANCE
Local libraries and nonprofit organizations regularly host free tax-support seminars. These sessions provide an opportunity for you to consult with experts about your tax filing queries. To find these resources, perform a quick online search with your city or county name and “tax help.”
LEARN FROM PAST RETURNS
Having your previous year’s tax return on hand makes the current year’s filing process less stressful. Establishing an organized system for filing tax returns can make the process manageable. If you find it more challenging than anticipated, don’t hesitate to seek professional advice. Recommendations from friends and neighbors can be incredibly helpful. Remember, though, that filing your taxes on your own could potentially save you a considerable sum of money.
How about you? Have you ever tried to file your taxes on your own? What approach do you usually take to handle your taxes each year?
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