Great Tips for Tackling Tax Season When Your Returns are Complex
Monday, March 2, 2020, 6:00 AM | Leave Comment
There’s nothing like the feeling of accomplishment that comes when you finally complete your federal tax return.
Getting to that point, however, can be quite an uphill battle, especially if you have a complex return.
Fortunately, with the right preparation and assistance, finishing your taxes doesn’t have to be an overwhelming feat.
If your tax returns are a little more complex than you bargained for, here are some tips to help you rein them in.
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Collect Your Files
One easy way to help make preparing your returns easier is to gather all the necessary documents in advance. Rather than working backward and trying to locate certain documents once you discover you need them, you can work ahead and gather all documents you might possibly need so you can complete your returns in one sitting. Documents you may need include W-2s, 1099s, receipts from non-taxed purchases, receipts from medical treatments, income and expense records for a self-owned business, and other income-related documents.
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Consult a Financial Business
The best way to ensure you complete your complex return correctly is to utilize a financial business to do your taxes for you. With experienced tax professionals working on your behalf, you’ll be sure to get your maximum refund and avoid mistakes that could result in penalties down the road. Since there are so many tax preparation businesses available, it’s important to read reviews to ensure you choose a company that is honest and reliable.
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Itemize and Compare
Given the changes in federal tax law, you may find that the standard deduction saves you the most money, even if you itemized in the past. However, if you have a complicated return, it’s still a good idea to itemize your deductible expenses and then compare the total with the standard deduction to see which option benefits you the most. After all, you want to be sure you get back every dollar you deserve, so you don’t want to accidentally leave money on the table by not itemizing when you did have enough deductible expenses to itemize.
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Find Definitions
One of the most difficult parts of completing tax returns is often simply trying to understand the sometimes-confusing terms used on the return forms. Though they can be difficult to understand, it’s important to ensure you understand the correct definition of these terms to avoid costly mistakes. It’s a good idea to search a specific term along with the specific tax situation it applies to so that you can be sure you’re applying a specific rule correctly.
One of the best ways to motivate yourself to finish your tax return is to celebrate once the process is over. If you plan to do this in advance, you’ll have something to look forward to while you work through the process. Then, when you’re in the midst of the work and it seems like it will never end, you’ll be able to look forward to your reward to help you keep going.
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Meghan Belnap is a freelance writer who enjoys spending time with her family. She also enjoys being in the outdoors and exploring new opportunities whenever they arise. Meghan also enjoys researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook and Twitter.
