How To Do Your Own Taxes The Right WayPosted at by ifydcat on category Personal Finance
Everyone starts to get a little nervous when tax season arrives, and many people hire professionals in order to make sure that their taxes are filed correctly. The truth of the matter is that it is not very hard to do them, so you can save some money if you learn to do them yourself. This article discusses a few of the things you need to know if you are thinking of doing your taxes on your own.
Most people do not think to keep receipts when they make purchases or payments, but if you do not save them you will have a pretty hard time trying to do your taxes. You should pick a designated area where you will keep all of your receipts until you need them. Being organized is important because you do not want to start doing your taxes then you realize that you are missing something.
Keep all of your paperwork in order, since you will need all of it in order to do things the right way. If you own property, have insurance, own stocks or anything else that contributes to your worth, you need to have all of that paperwork prepared so it can be filed. Many people keep any paperwork they need in an accordion file, so you should think about buying one of those.
There are multiple tax software programs available that will give you step-by-step instructions on how to file your taxes. All of the software is pretty user-friendly and simple to navigate. If you make under a certain amount of money, you can use some of these programs to file your taxes at no charge. This is the same software that a tax preparer would use if you chose to utilize their services.
Many people forget to claim everything that they are entitled to, which means they do not get all that is due to them. Things like energy-efficient light bulbs, installing solar panels, transportation passes and rent can be claimed on your taxes. You may or may not get a larger refund by filing these things, but you should give it a try.
Do not try and claim things that you do not have the right to claim. Many people do that, and that is how they become audited. One thing that is very common is people filing the children of relatives and friends in order to receive a larger refund. This is illegal, and if you are caught doing this you can end up in a lot of hot water.
Make sure that everything is filed by April 15, so there is no delay in anything and no penalties that have to be paid. That date is extended if it falls on a holiday, so make sure that you keep track of the due date for that year.
Doing all of this will ensure that you taxes are done correctly. It will also help you have everything you need available in case of an audit. Hopefully, this article has taught you that hiring someone to do your taxes is unnecessary, since you can do them yourself.