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5 Ways to Make Tax Preparation Easier
- Track Expenses All Year Long
- Don’t Procrastinate on Filing
- Try E-file Online
- Use Tax Preparation Software
- Reference a Copy of Last Year’s Return
Those who are new to paying their own taxes, as well as veterans of yearly tax returns, may benefit from adopting several tax filing tips. Tax preparation may require nothing more than a few minutes online during an E-file session, or it may require days of examining documents, records, and receipts. Fortunately, there are several methods to make paying taxes less complicated no matter the difficulty of one’s taxes. Also, adopting certain habits can reduce the stress and time associated with paying one’s taxes on time. Here are five pieces of tax filing advice for anyone who prepares his or her own taxes.
1. Track Expenses All Year Long
Scrambling to find information on vehicle mileage, business lunches, charitable donations, and all the other activities that may impact a person’s tax return may create a rather frustrating experience in April. A diligent taxpayer can keep a record during the year of all the expenses he or she thinks might impact the yearly tax form. At the very least, a simple file folder of receipts and information can offer a serious savings of time come tax day.
2. Don’t Procrastinate on Filing
Humans procrastinate virtually every day on tasks as inconsequential as taking the trash out to the curb and as important as getting the taxes mailed by April 15th. However, procrastination on paying taxes is so widespread that scientists at Columbia University and UC San Diego actually wrote a paper called Procrastination in the Field: Evidence from Tax Filing to predict the behavior of certain taxpayers.
3. Try E-File Online
Advice from the Internal Revenue Service (IRS) suggests using the IRS E-File system can help a taxpayer file taxes in the easiest and most accurate way. Not only is this method the most popular way for Americans to file a tax return, but it’s also considered the safest, according to the IRS. Taxpayers may use commercial software to prepare their taxes, and those who make less than $64,000 in income may use the IRS Free File system, which is a software program that is free to the public. Some taxpayers may qualify for assistance with e-file from the Tax Counseling for the Elderly (TCE) program or the IRS Volunteer Tax Assistance (VITA) program.
4. Use Tax Preparation Software
The federal government and various state governments send major tax forms to most United States Postal Service buildings in advance of April 15th, which means anyone who can reach a post office can pick up their appropriate 1040 form and the instructions to fill it out. Alternatively, taxpayers may choose to use self-guided tax software to file taxes. Several nationally known companies offer such software that asks the taxpayer pertinent questions designed to ensure all necessary forms and schedules are submitted correctly.
5. Reference a Copy of Last Year’s Return
Major life changes can impact the forms one must submit at tax time, but most people will spend a few years filing their taxes in the same manner with the same forms and information. The IRS requires that taxpayers keep a copy of their taxes for two years, but with a scanner and a flash drive, anyone can keep just about every tax document they’ve ever completed. In the event a taxpayer must file a series of complex forms with the IRS, having a copy of last year’s return can help even in the event some tax rules and forms change.
Filing one’s own taxes may result in a sense of accomplishment for the taxpayer after the tax return is stamped, sealed, and delivered to the federal government. Most Americans can file their taxes without the help of an accountant, even if their taxes require extra forms and schedules to complete. Using these simple tax filing tips can make the whole process easier whether it’s a submission of a single 1040EZ form or it’s the long form 1040 and a ton of added paperwork.