Tips For Filers Wanting To Do Their Own Taxes
There are not many people who look forward to doing their taxes. They can be complicated to do on your own and expensive to pay a professional to do for you. If you have the ability to do your own, there are many online programs that are around to make it much easier than when you had to file using the paper forms.
For those that are interested in DIY taxes, below are some top tips to take into consideration to help you get through and get you a tax refund you can be happy with.
Choose The Right Status For Filing
One of the most important parts of filing your taxes that will affect your refund the most is the filing status you choose. If you are not married and filing jointly, you might be choosing to file as a single person. However, if you have children or dependents, you might be able to choose another filing status that could result in a larger refund and more credits.
If you have more than one option for your filing status, it may be beneficial to try multiple returns to see which one gets you the best results before you file.
Add Your Deductions
Deductions are very important because they are what will reduce the amount of taxable income you have. If you file your own taxes, you might be tempted to choose the standard deduction. However, if you have donated a lot of items over the tax year or have bought a lot of business related expenses, you may benefit more from adding up your deductions instead of using the standard deduction.
It can be tricky to do, however, without the help of an accountant to help you add everything properly. If you bought a vehicle for your business, you may have considered auto title loans Tampa for when you are in need of cash. Keep in mind you may be able to add the loan interest to your deductions as well.
One of the bigger mistakes that people make when doing their own taxes is leaving out important information. If you forget something as important as one of your W-2s, you may find yourself in hot water with the IRS. Before you begin your taxes, you need to gather all related documents. Along with your W-2s, you will need things such as receipts for your charitable donations, business expenses, costs associated with finding new employment and medical expenses.
You might also need to prove any information regarding earned income from investments or money you have spent towards paying back your student loans or mortgage.
Double-Check Return And Filing Costs
The very last thing any tax filers want is dealing with the IRS auditing them. This is why it is essential to sit down and go over your tax return to make sure you didn’t make any mistakes that could cost you. It may take time to go over the forms a second time. However, the time it takes is well worth giving you some peace of mind when you finally file it.
There are also many ways to get discounts online or file for free. Mostly, it will depend on your filing status. The IRS also has a program where individuals can file their taxes online for free if their income falls below a certain amount.