Unlike Christmas’ wonderful time, tax season is the most stressful time of the year. Every working American must file a tax return, and there’s no workaround. Luckily, these tips are stress-free solutions for preparing complicated tax returns.
W-2s and 1099s will come in the mail or available for download around January 30. Keep those documents when they arrive. Gather itemized deduction receipts, PayPal/Payoneer transactions, bank information, business income documents, and contest winnings for the income section. Additionally, grab supplemental documents related to home office, education, homeownership, insurance, retirement, charity, and childcare to reduce taxes or gain a refund.
While you gather the employee and personal IRA and retirement accounts, there’s still time to add funds to the personal IRA and retirement account. Between now and April 15, add money to those accounts and get a full or partial deduction on the tax return. Both standard and itemized users can take the deduction.
Get Started Early
Accompanied by the necessary paperwork, now is a suitable time to fill out the tax return. Filling out the form now eliminates last-minute stress and overwhelming emotion. With the deadline being April 15, starting now gives tax filers plenty of time to finish. People can double check the document and add new information before sending it to the IRS. In fact, dedicate a day for tax preparation. Consequently, never procrastinate on tax returns. The stress between meeting the deadline and filling out the paperwork equals careless mistakes.
Simpler times meant filling out the tax form alone as professional tax preparers are costly. Today, tax forms grow complicated as tax preparers become affordable. Get assistance from tax preparation software, a tax preparation company, or a tax attorney/CPA like OC Tax Relief. Meet the selected professional early to avoid procrastinating stress from both parties.
Get Tax Benefits
With supplemental documents in tow, working Americans should take full advantage of deductions and credits throughout the tax form. A few money-saving tax credits and deductions are Standard/Itemized Deduction, Earned Income Tax Credit, Lifetime Learning Credit, and Child/Dependent Care Credit. Claim the deductions and credits where proof is abundant as it reduces tax liability. The experts at OC Tax Relief will work with you to uncover all qualifying deductions and credits available and help you obtain those benefits.
Just because preparing taxes is stressful doesn’t mean working Americans should give in to it. The new tax laws only add to the stress. However, let this information eliminate the overwhelming feeling and frustration accompanying tax season.