Does the thought of doing taxes leave you with feelings of existential dread? Does tax season make you want to stuff your shelf full of books with titles like “Doing Taxes for Dummies” and “Doing Taxes Explained”?
If your answer to either of those questions was “Yes.”, then consider this your doing taxes guide. Here are four essential things you need about filing taxes. All you have to do is keep reading.
1. The More Deductions, The Better
When you look at a tax bracket chart, it’s easy to take a look at how much money everyone pays and think, “My goodness, that’s a lot of money.”.
The good news, however, is that you can lower a tax bill quickly and easily by keeping track of the things you’ve bought during the last fiscal year. How? With deductions.
If you’ve contributed to your 401(k) or paid any major medical expenses this year, your deductions could put hundreds or even thousands of dollars back into your pocket this tax season.
2. Filing on Time Is Generally Best Even if You Can’t Pay Your Tax Bill
In situations where you’re expecting to owe taxes, it can be tempting to file later and delay the moment when the IRS sends you a letter that effectively says, “You owe us money!”.
As tempting as it may be to hold off, however, taxes are one of the few financial scenarios where you’re better off facing the music and getting your bill early . . . or at the very least, not late.
Even if it’s been a while since your last filing, you can visit https://silvertaxgroup.com/irs-fresh-start-program/ to find out more about your options while still making a point of filing on time this year.
3. File Online if You Can
If you’re not one of those people who loves paperwork and going down, I-need-this-incredibly-specific-government-form wormholes, tax software is one of the greatest inventions of the digital era.
Not only are the forms you need available for filling out then and there, but you can often get your tax return faster, too.
However, there are situations where people are required to file by paper.
If that’s you, you’re better off doing what the IRS says. But on the other hand, if you want to save time and money while getting your money faster, filing online just makes sense.
4. Estimated Payments Can Help You Lower Your Tax Bill
It’s been estimated that one in three Americans have picked up a side hustle.
And while there’s no doubt that a few DoorDash deliveries and a few Uber shifts can make you significantly better off financially, it’s important to note that these side hustles may increase your taxable income.
So how do you avoid being taken by total surprise during tax season?
You estimate your payment and send it in ahead of time.
You may underestimate the amount owed or you could end up making more than expected, but your tax bill will be significantly smaller if you make an estimated payment.
Doing Taxes Doesn’t Have to Be Complicated
If you’re like many Americans, doing taxes isn’t your idea of a fun time. The good news, however, is that with a little bit of know-how, finding payments may be easier than you think.
Check out our site for more tax-related tips and tricks.