Tax Tips
  • Tax Tips

    Tax time is stressful for all of us, whether we do them ourselves or with a tax preparer. Perhaps the most important part of the whole process comes near the end- once all the major work has been finished, it's important to do a double check. Every year, millions of people make all sorts of mistakes on their tax returns, many of them careless. These mistakes often result in people overpaying or not paying enough. And when you don't pay enough, you can bet you'll be hearing from the IRS pretty soon!

    Check Your Numbers

    The first thing you need to double check is your social security number. Remember that this is what identifies you on the IRS computers- if you make a mistake, you could get charged extra. Not only that rectifying an incorrect social security number entry is often a hassle. While you will have to double check a number of things on your tax refund, make sure that you triple-check your social security number to ensure they are all correct.

    Another thing you need to keep in mind is the tax code, as this does have a habit of changing from year to year. Checking up on the codes will let you know about new deductions that you can take advantage of. Thinking of itemizing your deductions to save extra cash? You might want to rethink that- many people actually end up losing money by opting for itemized deductions. Your best bet is to compare both standard and itemized deductions to see which will be the most profitable for you.

    Buying Time

    Remember that you can indeed request an extension on filing your tax returns. This extension does not require a reason and will give you six more months to get your numbers in order. However, it's important to remember that an extension doesn't mean you have extra time to pay- if you already owe money to the IRS, you'll still need to pay that by the deadline. It's also important to remember that getting an extension means facing a delay when it comes to your rebates.

    For those of you, who decide to get an accountant to do your taxes for you, make sure they are well-qualified and experienced. If you think you'd rather tackle your taxes yourself, you're in luck. There are a number of online resources available to help you out with all those taxing issues.

    It's also a good idea to speak with other people in your community about filing tax returns to get some extra hints. Last but not least, here's a tax tip to keep you going all year round. Keep an organized account of all your financial work. This will make things a lot easier when tax time comes around again.