5 Key Tips You Need to Make Tax Filing Easy

The vast majority of Americans are required to file a tax return by April 15th. However, you can typically start planning for tax season long before that date whether you have all of your tax documents available or not. Let’s take a look at some ways to ensure that you file an accurate return and either minimize what you owe or maximize your refund.

File Early

One of the easiest ways to ensure that your return is processed in a timely manner is to file the day the IRS begins to accept returns. This typically occurs in early February assuming that you aren’t attempting to claim the Earned Income Tax Credit (EITC). You can expect to get your refund within weeks if you file early, but it can take several months if you file later in the year or if you file by paper return.

Double-Check Your Filing Status

If your filing status is incorrect, the government can deny your return. Generally speaking, you must file as married if you have a spouse or single if you don’t. You can file as the head of your household if you are single but have a qualifying dependent. Your status will determine what your tax bracket is as well as what deductions or credits you might be entitled to receive.

Maximize Deductions and Credits

Most software programs will help you locate the deductions and credits you’re entitled to based on the information that you provide. Credits are especially valuable because they reduce the amount of tax that you owe whereas deductions just reduce your taxable income. The standard deduction is roughly $15,000 for single filers and roughly $30,000 for married couples filing jointly, and this amount changes each year in line with inflation.

Keep Accurate Records

Accurate records will make it easier to defend yourself in the event of an audit. In many cases, an audit will simply be a request for information to clarify your eligibility for a credit or deduction. If you’re self-employed, receipts and other documents make it easier to determine your net profit or loss for the year. Ideally, you’ll keep relevant records for up to three years after a return is due as that is how long the IRS generally has to audit a return.

Consider Professional Help

The help of a tax professional can make it possible to organize records, fill out IRS forms and take other steps needed to file an accurate return. In some cases, a professional will complete the return on your behalf or handle any issues that might arise after it is filed. This means that you can simply sit back and let the tax filing process take its course.

Filing your taxes in a timely and accurate manner can help you minimize the risk of an audit. It can also ensure that you don’t overpay the government or that you get your refund as quickly as possible. Generally speaking, it’s faster and easier to do so with software or by hiring a professional.