9 Helpful Tips for Filing Taxes
Yes, it’s already that time of year. After Christmas and New Year, now we’re hit with another big event — filing taxes. Obviously, the goal for everyone is to receive the largest tax refund possible, but that doesn’t happen magically.
For your taxes in 2020, these helpful tips could make the process less stressful and the outcome more successful. Why make things difficult when these easy tax filing options could have a significant impact as to what you receive in the form of a tax refund.
As part of the filing process, learn about the three primary types of taxes.
- Progressive – In simple terms, progressive tax, which relates to income tax, means you have more income that’s subject to tax.
- Regressive – This is the opposite of a progressive tax. Social Security tax is a prime example.
- Flat and Proportional – In this case, the amount you pay in tax is proportional or “flat” to how much you have.
Useful Information Whether You’re Working With a Professional Tax Preparer or Doing Your Taxes Online
- Preparation – Before anything, you’ll need to gather as much relative information and documentation possible. That includes W2’s, last year’s tax documents, 1099’s, paycheck stubs, and so on. This is also an excellent time to educate yourself about the different tax brackets and applicable deductions
- Hiring the Right Preparer – If you opt to have an expert prepare your taxes, make sure you validate his or her qualifications. Ask for the preparer tax identification number, review the preparer’s history with the Better Business Bureau, and have all service fees in writing before getting any work done.
- Self-preparation – If you prefer filing taxes without assistance, always use a reputable software program. You want something easy-to-use that can calculate your taxes, identify all deductibles, and process taxes online for a faster payout.
- Know the Deadlines – There’s a surprising number of people who miss the deadline on getting their taxes filed. As a result, they pay more in interest. That also puts them at risk for paying hefty penalty fees. You must have your taxes in the mail or submitted online no later than midnight of April 15, 2020.
- Learn about Deductions – This is where working with an expert or using state-of-the-art software is advantageous. There’s an abundance of deductions that people often overlook. This is especially true for parents and individuals who run a business inside the home.
- Report All Income – Regardless of the source or amount, it’s essential that you report all income. For one thing, that could help you get a larger tax refund. On the other hand, not reporting something could get you in trouble with the IRS. When filing taxes, honesty is always the best policy.
- E-filing – If you want to receive your tax refund quickly, use e-filing as opposed to snail mail. Usually, this is part of the service provided by tax preparers and the best software programs.
- Where’s My Refund? – No one likes to be in the dark when it comes to receiving their income tax money. Just as with e-filing, experts and top-of-the-line software programs offer a way to check the status of your return.
- Beware of Scams – Sadly, tax season is a time when scammers come out of nowhere. Never provide any information to someone claiming they’re a representative of the IRS. Also, avoid using any free tax filing service. It’s worth paying a fee to have an experienced and educated tax preparer help you with filing taxes.
Filing taxes doesn’t have to be a painful experience. Today, the process is easier and more efficient than ever before. Along with e-filing, high-tech calculators for your tax and tax refund estimate, and ways to check on the status of your return, you can get a cash advance. That means you’ll receive a portion of your tax return before the IRS has even processed it. For a lot of people, this helps tremendously.
You Don’t Have to Deal With Filing Taxes Alone
For outstanding support, InsureOne now offers professional tax return preparation at a competitive price. Working in partnership with Tax Max, you’ll receive superior service, whether your tax filing is simple or complex*. Plus, you can get your money right away with an advance up to $6,000**.
Visit one of our locations near you today!
*Tax services are not available in Oregon.
**Upon bank approval. Other restrictions apply.