Top Tax Tips for the Season
Smart Ways to Get Your Taxes Done on Time
Every year, tax season brings a certain amount of anxiety to us. We know there’s a deadline fast approaching, and it can be a hectic season for us all. There are a number of reasons why it’s worth thinking about your taxes as soon as possible, including getting your refund sooner, minimizing the chance of identity theft, and avoiding penalties for late filing. To help, we’ve rounded up some top tips to help get your taxes done in time.
Schedule time to look over documents
Part of the problem with trying to get your taxes done on time is that we get overwhelmed with all the paperwork involved and knowing you’ll have to gather things from many sources. To combat this, plan to spend an afternoon reviewing paperwork and gathering documents. Do this in a distraction-free zone so that you can concentrate on the task at hand. Be sure to consider the following:
- 1099 and W-2 tax forms sent to you, along with those for income from interest and dividends
- Canceled checks to confirm your donations that you’ll be claiming
- Retirement account documentation
- All receipts for deductible items that you weren’t reimbursed for already
- Medical bills that exceeded 10-percent of your income
- Tax information for your mortgage interest, mortgage insurance, and property taxes
For most people, time is money. So why waste time going through your taxes when you can hand it to a professional? Look for a professional in your area who can organize your taxes, file on your behalf, and ensure you get the biggest refund possible.
If all else fails – File an extension
Filing an extension can give you time to get your paperwork in order. Remember that receiving an extension only extends the time to file your taxes. If you owe, you are still required to pay what you owe on time. If you owe money and can’t pay it, you can ask the IRS for an installment agreement when you file your taxes. The installment agreement will allow you to pay your tax debt over six years.
Here’s hoping this tax season is smooth! For all of your insurance needs as a couple, talk to the professionals at Little & Sons Insurance Services, serving Banning and neighboring cities in California.