You’re not alone if you don’t fill out your taxes ahead of time and just wait for the last minute. Many of us who filled out our paperwork after January 1st is, of course, behind schedule, but there’s still time to mail it in and set our mind at ease. To assist you, we’ve put together four ideas that will save you time and money this tax season. You will skip fines and also save hundreds of thousands of dollars on your overall bill.
1. Organize Yourself
Many find it daunting to keep prepared and provide all of the required documentation as tax season begins. It may be difficult to collect all of the W-2 documents, 1099s, and numerous receipts, but it is possible. Here’s how to do it:
- Print a tax paper guide that you’ll use to file your taxes and keep it with you at all times.
- Keep all of the information you’ll need for tax season in one location. You can put anything you get here and find it later. And if it seems to be anything you won’t use, it’s best to be safe than sorry when it comes to taxes.
- Putting all your documents and receipts in one place is just the start. You should also organize and separate things into folders so you don’t have to go over everything later on.
- Gathering all of your records and receipts in one location is just the beginning. You can also sort and file stuff into files so that you don’t have to look over it again later.
2. Retirement and IRA Account
According to the official IRA website, those who haven’t yet paid into their savings account have until April 15 of the following year to do so. [1] Tax-deductible investments will help you save money, and it’s definitely a smart thing to save for the future.
The estimated IRA contribution for 2019 and 2020 is $6,000 for those under the age of 50 and $7,000 for those over 50. [2] If you make the full contribution, you can save up to $1,500 in tax deductions. Bear in mind that there are several aspects to consider, so you can work with a trained CPA first.
3. Free Tax Forms Online
There’s no need to frequent the library or the post office to obtain the necessary tax forms. Instead, you can print all you need at home by uploading all you need from the IRS website [3]. Another choice is to order that the scanned copies be shipped to you. Finally, you can use tax applications such as TurboTax or QuickBooks, which contain all of the required types.
4. File Taxes Online
Filing your taxes online using advanced tools has a range of advantages in addition to getting the proper tax forms at your fingertips. The following are the most important:
– The Internal Revenue Service (IRS) may recognize that you have filed your returns. This is something you won’t get if you register your taxes the old-fashioned way. If a paper return is filed and later lost, this is a safe way to escape further fines or interest. The IRS will be able to handle electronic returns more easily. This means you will get your refund three to six weeks faster than planned.
If it’s January, there’s no reason to be worried with taxation. To save time and resources on your most recent tax return, arrange your records and payments, receive the correct paperwork, and try filing online.
[1] https://www.irs.gov/retirement-plans/ira-year-end-reminders
[3] https://www.irs.gov/forms-instructions
