With the 2014 tax filing season under way, Americans are scrambling to find every deduction or credit available to them. Here are 10 steps that taxpayers may be able to take to get the most in a refund on their 2014 returns. Ignoring IRS tax problems is a big mistake many people commit. If tax debt goes ignored, interest and penalties will continue to accumulate and put you at risk of receiving a bank levy, wage garnishment or having assets seized and sold at auction.
The IRS has the legal right to take any of these actions if a tax debt cannot be collected. Some of these steps are complex and require that you itemize your return, rather than take the standard deduction. And some deductions are claimable only in the amount that exceeds 10 percent of your adjusted gross income. Other restrictions may apply, so consult an irs debt attorney or use tax preparation software to see whether these tips can be put to work for you.
— You’ll get all the necessary information on tax filings in easiest of all formats. At www.irs.gov, you will discover many sources of information. You can download and print tax forms, access tax law information and changes, find a list of answers to frequently asked questions, and access numerous online tools and filing tips.
— If you don’t have a filing system for your tax records, you should start one. It can be as simple as saving receipts in a file, or more complex like creating spreadsheets. It’s always a good idea to save tax-related receipts and records. Keeping good records now will save time and help you file a complete and accurate tax return next year. Put your previous tax return and supporting documents somewhere safe. If you need to refer to your return in the future, you’ll know where to find it. For example, you may need a copy of your return when applying for a home loan or financial aid. You can also use it as a helpful guide for next year’s return.
— Establish one location where everyone in your household can put tax-related records during the year. This will avoid a scramble for misplaced logs or charity receipts during tax filing time. Organizing and maintaining a filing system will keep everything conveniently together, and make filling out forms that much simpler.
— Take time throughout the year to store and organize your records, canceled checks, and receipts in one place. Remember to include the income, deduction, or tax credit items that you reported the previous year. Gather all of your W-4 Form, Wage and Tax Statements, and 1099 income statements to report your income when you file your taxes. Keep them with your other records to make sure you can easily find them, when you need them.
— If you use a tax professional to help you with tax planning, start your search now. You’ll have more time when you’re not up against a deadline or anxious to receive your tax refund. Choose a tax professional wisely. You’re ultimately responsible for the accuracy of your own return regardless of who prepares it. For e.g. Expert tax lawyer at Defense Tax Group, provides tax debt solutions to all of your tax problems.
— If you usually claim a standard deduction, you may be able to reduce your taxes if you itemize deductions instead. If your itemized deductions typically fall just below your standard deduction, you can ‘bundle’ your deductions. For example, an early or extra mortgage payment or property tax payment, or a planned donation to charity could help you save or reduce your tax.
E-File — Electronic filing (e-filing) is the fast, easy and convenient method of filing tax returns or reports and paying amounts owed over the Internet. E-filing presents an easy and convenient method of filing your taxes. Errors are reduced and refunds are returned faster than mailed documents. To e–file your 2016 tax return or other electronic forms, you must verify your identity with your Self-Select PIN or your Adjusted Gross Income …
— With direct deposit you can have it all. Whether you file electronically or on paper, direct deposit gives you access to your refund faster than a paper check. Direct deposit also avoids the possibility that your check could be lost or stolen or returned to IRS as undeliverable. When you enter information for this option, take all the time to double-check your bank account number to avoid errors.
— Your social security number, address and signature and double-check it. The IRS will simply send it back for your signature. But if you repeatedly forget to sign and the IRS will believe that this is a deliberate pattern, you could face fraud penalties, and unwanted attention on your future returns. When you have finished with your forms, take a couple of extra minutes to double-check your information. Also check your spelling and math. If your forms are hand-written, make sure they are legible.
— Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through IRS.gov, the mobile app from the IRS. The IRS issues tips regularly during the tax filing season.
All these easy to follow steps will help you in filing tax without any apprehensions and will make the entire tax filing process smoother. You can also access professional guidance from professional IRS TAX RELIEF ATTORNEY at Defense Tax Group, the leaders in providing solutions to all your tax problems.