How to Gain Tax Time Financial Peace of Mind
Work with an accountant or tax professional., Maintain an efficient record-keeping system., File an extension if you feel that you cannot collect all necessary information in time., Report legitimate numbers on your return., Keep track of donations...
Step-by-Step Guide
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Step 1: Work with an accountant or tax professional.
Tax preparation software available online is simple and easy to use if you have a straightforward return with no exceptions.
However, a tax professional knows the latest rules and regulations, gives advice for future preparations and helps find additional deductions that tax preparation software can't.
By having a discussion, face to face with your tax professional, he can give you advice that no software can predict for your individual situation. -
Step 2: Maintain an efficient record-keeping system.
It is essential to keep all receipts and documentation for home improvements, business deductions and child-care or education credits.
To simplify tax returns, maintain an orderly record of these.
Keep them separated by month and in order sequentially within the month's file.
By maintaining good records of expenses and costs, you are providing a paper trail in case you are audited. , Paying attention to deadlines is one of the most important things to remember when filing your taxes.
If you can't accurately file your taxes to the best possible outcome for yourself by the deadline, file an extension or ask your tax professional to file an extension.
Don't wait until the last minute to file the extension.
Plan ahead enough so you will not be hurried in order to file your extension. , By keeping good records, you won't put yourself in a position of trying to recall a particular expense that occurred seven months ago.
By reporting accurate expenses and incomes, your income tax return will be correct and will hold up to any audit.
Reporting inaccurate numbers may leave you open to prosecution if you are ever audited, and any money you saved in taxes will be spent on legal fees. , Ask for receipts when you make donations of clothing, time or other services.
Write checks when making cash donations to groups or organizations.
The value of these contributions cannot be questioned when documented well. , If you don't need the extra when it comes time to file, you'll receive a nice chunk of change back in return. -
Step 3: File an extension if you feel that you cannot collect all necessary information in time.
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Step 4: Report legitimate numbers on your return.
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Step 5: Keep track of donations and charitable giving.
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Step 6: Withhold extra money from your regular paychecks to help cover any additional tax costs.
Detailed Guide
Tax preparation software available online is simple and easy to use if you have a straightforward return with no exceptions.
However, a tax professional knows the latest rules and regulations, gives advice for future preparations and helps find additional deductions that tax preparation software can't.
By having a discussion, face to face with your tax professional, he can give you advice that no software can predict for your individual situation.
It is essential to keep all receipts and documentation for home improvements, business deductions and child-care or education credits.
To simplify tax returns, maintain an orderly record of these.
Keep them separated by month and in order sequentially within the month's file.
By maintaining good records of expenses and costs, you are providing a paper trail in case you are audited. , Paying attention to deadlines is one of the most important things to remember when filing your taxes.
If you can't accurately file your taxes to the best possible outcome for yourself by the deadline, file an extension or ask your tax professional to file an extension.
Don't wait until the last minute to file the extension.
Plan ahead enough so you will not be hurried in order to file your extension. , By keeping good records, you won't put yourself in a position of trying to recall a particular expense that occurred seven months ago.
By reporting accurate expenses and incomes, your income tax return will be correct and will hold up to any audit.
Reporting inaccurate numbers may leave you open to prosecution if you are ever audited, and any money you saved in taxes will be spent on legal fees. , Ask for receipts when you make donations of clothing, time or other services.
Write checks when making cash donations to groups or organizations.
The value of these contributions cannot be questioned when documented well. , If you don't need the extra when it comes time to file, you'll receive a nice chunk of change back in return.
About the Author
Robert Hall
Brings years of experience writing about home improvement and related subjects.
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