With the 2014 tax filing season underway, most Americans are scrambling to find all deductions or credits that are available to them. Here are ten 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, penalties and interest will continue on accumulating and put you at risk of getting a wage garnishment, bank levy or having assets seized & sold at auction.
Any of these actions can be taken by the IRS since they have the legal right to do so if a tax debt can’t 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.
Here are ten best tips to make your tax filing easier :-
1). IRS website.
— You’ll get all the necessary information on tax filings in the easiest of all formats. At www.irs.gov, you will discover many sources of information. You can download & print tax forms, access tax law information & changes, find a list of answers to FAQs, and access many filing tips and online tools.
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2). Start a filing system.
— If you do not have a filing system for your tax records, you ought to start one. It could be as simple as having receipts saved in a file, or more complex like producing spreadsheets. It is always a great idea to save tax-related records and receipts. Keeping good records now will save time & help you file an accurate and complete tax return next year. Put somewhere safe your previous tax return & supporting documents. In the future, if you want to refer to your return, 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.
3) . Organizing records.
— 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. Maintaining and organizing a filing system will keep everything together conveniently, and make filling out forms a lot easier.
4) . Reporting all income.
—Throughout the year, take time to organize and store your records, canceled checks, as well as receipts in a single place. Remember to include the tax credit items, deduction, or income 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.
5) . Shop for a tax professional.
— 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. Wisely, select a tax professional. You are ultimately responsible for the accuracy of your own return no matter who prepares it. For e.g. Expert tax lawyer at Defense Tax Partners, provides tax debt solutions to all of your tax problems.
6) . Consider itemizing deductions.
— If you regularly claim a standard deduction, you might be able to decrease your taxes if you itemize deductions instead. If your itemized deductions naturally fall just below your standard deduction, you are able to ‘bundle’ your deductions. For instance, an extra or early property tax payment or mortgage payment, or a planned donation to charity can help you save or reduce your tax.
7) . Use E-file.
E-File — Electronic filing (e-filing) is the quick, simple and convenient method of filing reports or tax returns and paying amounts owed via 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 …
8) . Use Direct deposits option. Speed, safety and choice
— With direct deposit, you can have it all. Either you file on paper or electronically, direct deposit provides you access to your refund faster compared to a paper check. Also, direct deposit avoids the likelihood that your check might be stolen or lost, or returned to the IRS as undeliverable. When you enter information for this option, take all the time to double-check your bank account number to avoid errors.
9) . Double-check your return. Don’t forget to mention
— Your social security number, address and signature and double-check it. The IRS will just return it back for your signature. But if you forget to sign repeatedly and the IRS will assume that this is a deliberate pattern, you might face unwanted attention, and fraud penalties 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.
10) . Keep up with changes.
— Search about changes in tax law, IRS announcements and helpful tips all year by subscribing to IRS Tax Tips via IRS.gov, the mobile app from the IRS. The IRS issues regularly tips during the season of tax filing.
All these easy-to-follow steps will help you in filing taxes without any apprehensions and will make the entire tax filing process smoother. You can also access professional guidance from a professional IRS TAX RELIEF ATTORNEY at Defense Tax Partners, the leaders in providing solutions to all your tax problems.
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