It’s tax season! A lot of people dread this time of year. At Zebit, we want to help you with some tips to remove some of the stress and anxiety that inevitably come around this time of year.
Get to Know Your Tax Profile
Knowing your tax profile is an incredibly important part of determining how much in taxes you should have paid throughout the year. If you overpaid, you could receive a tax refund. If you underpaid, you may owe additional taxes. In order to do this calculation, you must know your tax profile.
● Understand Your Filing Status – Each status has its own set of unique benefits and disadvantages. In order to help you find the correct status for you, try utilizing this free tool from the IRS.
● Understand Your Tax Credits – There are several different credits available that will lower your tax owed. Tax credits are often confused with tax deductions. Tax deductions reduce taxable income while tax credits reduce the amount of taxes owed. Here’s a link to a list of Tax Credits, check them out and see if you qualify.
Know the Best Way to File for You
● Tax Preparer – You could hire a tax preparer, a specialized accountant, and have them prepare and submit your taxes. While this may be an easy, time-saving choice, it may not be the most cost effective, especially if your tax situation is not very complicated.
● Online Tax Program – It’s quick and easy to file online with the help from a few tax programs like Turbo Tax or H&R Block. Some even offer W-2 imports, which could reduce the risk of typos on your return. One item to calculate before you begin is the total price to file. A lot of programs will advertise that it’s free to file, but most services limit the free version to file your federal taxes only and often charge a fee to file your state taxes. There also can be hidden fees for specific features that you may have expected to be included in your initial filing.
● Through the IRS – Perhaps one of the best ways to file is through the IRS itself. They offer an IRS free file option to file online for those who make under $69,000 annually and a free option with paper forms for those who make over $69,000 annually.
Don’t Be Afraid to Ask For Help
Whether you go to an accountant or choose to file yourself, don’t be afraid to ask questions. Make sure the method you choose offers support by email, online chat, over the phone, or in-app. The IRS website is also a great resource! Taxes can get complicated, especially if you’re not an accountant, so being able to ask questions is vital to understanding the process.
Tips to Help You Prepare for Next Year
One of the most helpful things you can do is be organized. Now, it may be a little too late to get started on that process for your 2019 taxes, but you can do yourself a favor and start by getting organized and saving your 2019 tax forms, 2020 receipts, and any other tax documents. This will make filing next tax season a breeze. It’s recommended to keep these documents on-hand for at least three years in case the IRS audits your tax returns.
So there you have it, a few quick tips to help you get through this tax season and set you up for success for all future tax seasons. Did we miss something that makes your tax season stress-free? Let us know in the comments below!