Tax filing process can be stressing and overwhelming. Here are 4 things you need to know to make the process as easy as 1, 2 ,3.
After every tax year, you need to file your tax returns. This will ensure you are in good terms with the IRS and avoid penalties by paying your tax bill on time. Also, you can claim a tax refund if your withheld taxes are more than your tax bill. Tax filing requires you to have essential documents such as Form W-2, among many others. The process is not that easy, but with the following tips, you will file your tax returns easily and even get a bigger tax refund than ever before.
1. First, know what you need to file your taxes
You need to know what you need to file your taxes. As you know, there are different taxes ranging from income taxes to property taxes. Filing for each tax will require different documents. For instance, when filing income tax returns you need Form W-2, among other documents for you to file your income tax successfully. In support of your tax deductions for dependents, child tax credit, and other deductions/credits have documents to support that.
2. Know the deductions or credits you are eligible for
If you want to pay a lower tax bill or even get a bigger tax refund, you need to claim tax deductions and credits you qualify for. If you are a low income earner, you are eligible for Earned Income Credit. Also, if you have qualifying child(ren), you are eligible for Child Tax Credit. Other tax deductions you can qualify for include medical expenses tax deduction, tax deductions for dependents, and more. If you put all this information together, you will end up paying less tax or even get a huge tax refund.
3. Use online tax calculators
If you want your tax filing process to be easy, you need to be very smart. Some of the calculations involves in tax filing can be challenging, and you may need a tax professional to assist you. However, you don’t have to hire one, as you can use an online tax calculator, to calculate some of the tax deductions and credits you are eligible for. This way you will know whether you will have a tax bill or get a tax refund come tax time.
4. Best option – file your tax returns online
Tax filing can be a complicated process. You may even need to hire a tax expert to prepare and file taxes for you. However, with a good online tax filing software like TurboTax or H&R Block, you can easily file your taxes online. You just need to submit some essential information, answer a few questions and the tax program will do the rest for you. It’s accurate, fast and very convenient.
With the above tips, you now know what to do when tax season comes. You just need to have all the essential documents, and determine the tax deductions and credits you qualify for. From there, use either H&R Block or TurboTax to file your tax returns for you. It’s that simple!