People tend to say that only two things in life are inevitable, taxes and death. How optimistic! We believe that now during the pandemic, the last thing on your mind is to focus on them, however, you gotta do what you gotta do!
No matter how irrelevant it may seem to be, now is the perfect time to make all the necessary preparations and moves. Furthermore, you can even increase your tax refund by taking a couple of very simple steps.
So, while you are doing that, at the same time, you can take a few additional steps to prepare yourself for the upcoming season. If you haven’t done this before, or you just need a little reminder, check out these tips that are going to help you complete this process successfully!
Prepare All Your Important Documents
It’s important to gather all your tax documents, no matter how early they may seem to be. If you prepare everything right on time, you will not forget anything. It would be recommendable to make a file intended for the tax year and put everything relevant inside.
So when the time comes to file your tax return, you are going to be prepared. If you were born in the United States, yet you live abroad, you should go online to see what type of documents you need to prepare for an expat tax return.
Furthermore, it wouldn’t hurt to think of all the changes that took place over the past twelve months. Ask yourself whether you had any moving costs regarding the change of your job location? Were you obligated to pay for child care? All these questions are going to allow you to take further deductions.
Those who are last-minute filers are frequently trying to find a way to quickly and efficiently file and submit all their returns. Tax specialists at keepertax.com suggest that a lot of people turn to cell phone applications instead of going to a CPA. So what are the benefits of using these types of applications?
Namely, these apps were made to be user-friendly and easily accessible. One of their biggest advantages is that they are extremely easy to utilize, plus they have a very appealing design. Most applications of this kind are going to walk you through this whole process, carefully, step-by-step, to help you avoid any huge mistakes.
All the information is quite simplified so that you are able to comprehend the tax terminology and you’ll be able to understand every single question. Moreover, these apps can be downloaded and employed on different devices, such as:
- Tablet computer
- Cell phone
Calculate Your Projected Payroll Taxes
Along with deductions and costs, your payroll taxes must also be up to date and estimated. This is a huge part of the assessed tax payment schedule. Smaller companies could benefit from an IRS installment plan.
For instance, if you owe less than twenty-five thousand US dollars in combined tax, interest, and penalties and yet you filed all the necessary returns, then yes, you may be eligible. Anyhow, you should definitely go to the website of the IRS to gather more information.
Select A Preparer
If you do not already have one, a great way to find it is to either ask your friends for recommendations or advisors. When we say advisors, we refer to attorneys. Make sure that the person you picked has a Preparer Tax Identification Number (PTIN) which showcases that this individual is qualified for the process of this kind.
Another important thing worth considering is to find out how much is supposed to be paid for the fees, which generally depend on the severity of your return. Do not utilize a company that wants to take a percentage of your refund.
List Your Personal Information
You probably already know your Social Security number, however, are you familiar with the Social Security number of every single dependent you claim? If not, then it’s time to learn it, along with any other useful info your tax preparer is going to demand.
For instance, if you have a rental property or vacation house, note the addresses of both of these places. Moreover, if you sold a property during the last year, write down the dates you sold or bought something, how much you’ve gained and originally paid.
To be real, no one is looking forward to this process, but as we already stated in the beginning, it’s simply something that must be done. So to make things less stressful, follow these steps and you’ll do just fine!