Saturday, September 21, 2013, AM | Leave Comment
Tax time is something that most people do not look forward to each year, especially if they plan on owing more money to the government. The process of gathering up the necessary paperwork and sitting down to fill out numerous government forms can be a real pain.
Fortunately, there are some basic tips that any taxpayer can try as a way of making the process of filing taxes easier and a bit less painful.
Even if you plan on owing money, it is a good idea to file your taxes as soon as you have the necessary tax forms and are able to do so. By filing early, you avoid the stress of waiting until the deadline is just around the corner. Furthermore, if it turns out that you owe money, you will have more time to come up with the funds or to work out a payment plan with the IRS.
Keep Organized Records
A lot of the stress of doing taxes comes from simply gathering all of the forms necessary to do so. Scrambling to locate W2s, pay stubs, and receipts can make things a lot more complicated than they need to be. By committing to staying organized and keeping all necessary paperwork in a file folder dedicated to taxes throughout the year, it is much easier come tax time to get started.
Apply for Exemptions
Nobody wants to pay more money than they need to, especially to the IRS. By making sure that you claim every exemption, deduction, and credit you are entitled to, you can reduce your chances of owing. Specifically, if you live in Indiana and run a business, you may be entitled to a utility tax Indiana exemption. Utilities such as electricity, gas, and water are non-taxable when used for manufacturing or processing. You will have to provide proof to the government as to what percentage of your utilities are used for this purpose, but this exemption can be a great way to save money.
Make a List
Before beginning your taxes, make a list of big changes that have happened in your life during the past tax year that could affect your taxes. Did you get married or divorced? Perhaps you landed a new job or even won lottery money. Making a list ahead of time will help you ensure that your taxes get done correctly.
Hire a Professional
While software has made it easier for individuals to complete their taxes alone, these programs are not fail proof. Hiring a tax expert to review one’s taxes prior to filing is a great way to catch missed credits or deductions, and to fix errors before they reach the IRS and possibly trigger an audit.
Doing taxes is never fun by any means, but these tips will help you get through the process more easily.Facebook.com/doable.finance