6 Essential Tips for Tax Season – Advice For The Best Ways To Get Through Tax Season Safely
As I’m sure the readers of 22Dollars are aware, tax season is in full swing. By now, we all should have received the necessary paperwork from our employers, banks and other investment institutions and can get to work on our tax returns if we haven’t already.
It seems like each year there are more and more options for individuals looking to prepare their tax returns, and it can be difficult to know who to trust. Lately the news has been filled with stories about tax-related scams to watch out for and everywhere you look there are advertisements offering “worry free” solutions.
So with the April 15 deadline looming, here are a few simple tips to keep in mind as you’re preparing your taxes:
- Choose what’s best for you – Filing your taxes is a very personal matter, and there is no “one size fits all” solution that works for everyone. When deciding the best way to complete your tax return (whether that means working with an accountant, using an online tool or preparing them yourself) make sure to weigh all your options and choose the one that you feel most confident about and makes the most sense for your situation.
- Stay organized – If you proactively keep all your important documents and receipts organized in one place, you’ll save yourself a great deal of time, frustration and money (as some institutions may charge you for reprinted documents) trying to track down the things you need to file your tax return.
- Plan ahead – The longer you wait to file your taxes, the more hectic every accountant’s schedule will be, the more difficulty you’ll have getting your questions answered and the more likely you are to make mistakes. If you start preparing your tax return early, you’ll give yourself plenty of time to ensure accuracy, be able to address any issues that may arise and get your refund sooner.
- Double check everything – Whether you’re preparing your own tax return or working with an accountant, filing your taxes is a very detail-oriented task and it can be difficult to correct mistakes once your return has been filed. To avoid headaches and delays in receiving your refund, double check that all the data you’ve entered is accurate.
- If you don’t know, ask – If you’re not sure about how to complete a portion of your tax return – don’t guess! Remember that if you guess incorrectly and end up making a mistake, the IRS will not consider ignorance to be innocence.
- Be honest – The old phrase “honesty is the best policy” goes without saying when it comes to your taxes. The amount of money you might think you’re saving yourself if you “fudge” your taxes a little, is definitely not worth the heightened fines you may end up paying, potential jail time and damage to your reputation should the IRS come knocking.
Despite its challenges, tax season provides a great opportunity to reflect on your financial situation from the past year and focus on how you want to manage your money, not including any payday loans, moving forward. We at 22Dollars.com wish everyone the best during this time of year and would love to hear any other tips you wouldn’t mind sharing for preparing your tax returns!