When it’s time to file taxes, individual taxpayers get nervous. No one wants trouble with the IRS. There’s no need to panic. Here are 5 individual tax tips individual taxpayers need to know.
1. Getting Things In Order
Getting organized solves half of the potential errors and mishaps that can occur. Whether you have a W-2 or 1099 form, it needs to be kept in a safe place. Without the proper form, you cannot successfully complete your taxes. Another part of tax organization is keeping track of your deductions. Keeping good records is a good way to ensure you don’t overpay on taxes. If the IRS has any questions, your records can speak for themselves and resolve many issues.
2. Time Is Money
Paying your taxes late could result in expensive fees and penalties. Your forms must be complete and submitted by the cut off date. If you require an extension, it must be granted by the IRS. Keep in mind the filing state deadline may differ from the Federal deadline.
3. Keep Your Identity Safe
Tax time is a holiday for skilled and professional hackers. Avoid becoming a victim of identity theft by keeping your tax information protected. If you receive a suspicious email stating the IRS needs personal financial information from you, it’s a scam.
4. Investigate Filing Details
If you are filing your taxes as a legally married couple, make sure you and your spouse are aware of both the laws of the state you were married and the current state you reside if they are different because tax income laws vary by state.
5. Prepare and Wait
You may be in a hurry to file your return and receive your money, but you may want to wait until just before the cut off date, especially if you have investments. You can prepare and review your tax return as many times you would like before it is submitted. Take your time preparing your tax return and ensure it is accurate to avoid common mistakes and prolonging the tax return process.
Whether you are experiencing issues with taxation, accounting, the IRS, estates and trusts, resolution, financial planning and investment, business formation or real estate and business sales, we are here to help get your situation handled in a timely manner. Contact us today to see how we can help.