Filing taxes can be a complicated process. To simplify the process, here are 4 things you need to know about filing taxes.
You need to pay taxes to the IRS. Filing your tax returns and paying what you owe on time helps you avoid penalties. Also, filing your tax returns can help you get a tax refund from the IRS if your withheld tax is more than what you owe the government. To help you learn more about tax and tax filing process, here are 4 things you need to know.
1# Know tax filing due dates
If you don’t want to have problems with the IRS, you need to know tax filing due dates. This will ensure you file taxes on time. That way no penalties will be added to your tax bill. The due date for federal income taxes is mid April every year, but this year it was extended to 15th July due to the Covid-19 pandemic. When it comes to state income, the due date can vary with states. Therefore, it’s advisable you get information from your state officials about the deadline to file your state income taxes. That way you will always file your taxes on time, and pay what you owe or get a tax refund.
2/ Know the tax deductions you qualify for
If you don’t know the tax deductions you qualify for, you will end up paying more taxes that you should. Knowing your tax deductions can help you claim a bigger tax refund or pay less tax to the IRS. Some of the tax deductions include charitable donations, real estate tax, interest on your mortgage, tuition fee for dependents, and municipal income taxes. In addition, you can be eligible for tax credits such as child tax credit, earned income tax credit and others, and these tax credits will be deducted from your tax.
3/ Filing your taxes online is the best option
In today’s digital world, you don’t have to carry tones of papers when filing taxes. With the Internet, you can file your taxes at the comfort of your home or office. All you need is accurate information and forms from your employer or business, and you are ready to go. However, before you file your taxes, you need to have an estimate of what you owe the government or may be what the IRS owes you. Use Taxcaster 2021 calculator to know whether you will get a tax bill or a tax refund come tax time. With all these being done online, you don’t have to make a trip to the taxman.
4/ Learn the tricks to increase your tax refund
Before you file your tax returns, use Taxcaster 2021 calculator; the best online tax calculator to get an estimate of your tax bill. After knowing the estimate, focus the tax credits you qualify for ranging from child tax credit to earned income tax credit. Include them in your tax deductions. Also, claim the dependent you have been supporting, and take Above-the-Line deduction if you qualify. In addition, sometimes consider itemizing your deductions instead of taking standard deductions. With all these tricks, you are likely to end up getting a bigger tax refund.
Knowing all the above will help you avoid problems with the IRS. In addition, you will have an easy time when filing your taxes, and most likely, get a bigger tax refund come tax time.