Author: Jonas Gihone Akula
Filing tax returns is not a pleasant job for everyone. Many people do not like doing this task. Fortunately, now people can do tax e filing online, which is better than filing tax returns manually. And if you really want to save some money, you should plan on using a professional tax preparer.
Tax preparers can help ease out some things for you to help you focus on other essential items. The best part about professional tax preparers is that they have a good idea of the loopholes. They will do everything from their end to help you use the proper tax deductions and credits.
But if you want to do tax e filing yourself, you can do it. But, there is something that you should bear in mind. Many people rush to submit their tax returns to commit mistakes, which can sometimes attract some penalties.
Here are five tips that will help you to file your tax returns smartly:
Double-Check the Information Before Submitting
Now, this is one of those good habits that will help you not committing mistakes. Take some time to go through the tax return that you did prepare. Go slow to ensure that all the information that you provided online is accurate before submitting the returns. If there are any typos or inaccurate social security numbers, modify them.
Here are some questions that you might want to ask yourself:
- Did I include the deductions that I used last year in this year’s return?
- Did I list all of my dependants?
- Am I paying the correct amount towards the taxes? Ensure that the calculations are accurate before taking things forward.
Collect All Relevant Documents
Do you have all the documents you need with you? Take some time to run through your cupboards, shelves, and cabinets to ensure that you are not missing any record. Calculate all the amounts to ensure that they are summing up to what you will record on the tax returns.
File an Extension If Needed
IRS did extend the tax deadline, but that does not mean that you are ready to file your returns within that date. IRS is okay if you are not prepared, as long you submit an extension.
You have to fill and submit form 4868 to file an extension. It is easy to fill and submit. Do not forget that you might get a penalty if you do not do this and do not submit the tax returns on time.
Make Use of IRS Payment Plans
If you are having a terrible year and are not having enough pay to pay the tax bill, do not panic. You can check the available IRS payment plans. You can use them to get fewer penalties and quickly pay what you owe to the agency.
Use a Tax Preparer
As states earlier, if these things are confusing, do not hesitate to use the best tax preparer in your locality to assist you with tax e filing. You will save both time and money when you pick this option over doing it yourself. They will provide the proper guidance so that you do not miss out on anything.