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Archive for March 11, 2014

Last Minute Tax Filing Tips That Will Help Out Your Financial Status

Tax season can be one of the most stressful periods of the year. From worrying about getting your W-2s in on time to going through the filing cabinet to retrieve all those receipts you think you might need, tax season can really do a number on most people’s mental state. Even after you get everything in you still have that lingering feeling that you could possibly get audited. Tax season doesn’t have to be a period to stress out over finances though and even if you can’t shake the stress you can still turn it into a period of rejoice when you get your tax return back. There’s a few ways you can maximize the amount you get back each year though, which can really make you feel better about the tax season blues.
tax-tips-2014
1. File Yourself
One of the biggest mistakes you can make with your taxes is having someone else file them for you. No one really understands your finances and accomplishments quite like you do, so why let someone else pour through your receipts to get you a refund. Instead of going to a place to get the taxes worked out try buying a program that can help you work through all of the stages without the help of a professional. You might also want to get online to see if you can get through all of the grueling questions without actually purchasing a program yourself. If you do figure out how to file for yourself then you’re already looking at a great tax return. Apart from being able to find all of the discounts your family will receive you’ll also end up paying very little to get your taxes filed. People who tend to go to a tax agency can end up paying up to $400 of their return, which can really be a huge burden on your finances.

2. Bring in Old Taxes
If you do happen to go in to an agency to get your taxes done then there is one saving grace for the huge feel you’ll pay. That is, most agencies will look over last year’s taxes for no extra cost. Of course, you have to be a loyal customer of their agency as they don’t want to go over some other agencies work. However, if you happen to frequent a tax agency every year then you might ask them to go over your return from last year. A lot of the time they can spot areas that were missed and correct them so your return will come back even larger this year. Make sure you ask to ensure your agency does this for free as many might want to charge you a little extra for the service if you don’t ask.

3. Know Your Deductibles
One of the biggest catches when it comes to filing taxes if your deductibles. A lot of people are unaware of the actual items they pass up when they file yearly. Before you decide to file, whether on your own or with an agency, try doing a little research to see what you qualify for. You might be surprised as to what actually passes as a legal deduction when you file. For instance, if you had to pay a lot of medical bills this year then you may be in for a little bit of that money back. Also, if you were forced to relocate due to work then you’ll probably be looking at a little extra money on your return this year. Knowing is half of the battle of filing though, so if you have a hunch that you deserve some more money back then look it up. There’s also a lot of agencies that you can call, at no cost, that will answer your tax deduction questions.

4. Keep Those Receipts
Although it isn’t always easy to remember to hold onto a receipt, it might be in your best interest to do so as often as you can. Of course, this tip only stands within reason. You don’t need to hold on to receipts if your family goes out to eat or you buy your child a new toy. Rather, if you are forced to buy uniforms for a new job then you may want to keep these receipts. The government tends to give back money for those who go the extra mile for a job, so make sure if your purchase is work related you hold onto the receipt. Usually you can get returns for items such as clothes and gas purchases if they tend to be work related. You may have to go a little further to prove the items were for work, but every little bit helps. If you are self employed then you should also keep your receipts for any equipment or software you buy to better your business. If you have trouble keeping track of these items then create a jar for your receipts. When you buy gas toss in the receipt and leave it until tax time next year. You’ll be thankful you did when you get a little extra money back.

5. Count the Kids
Let’s face it, kids are pretty expensive. Thankfully the government knows that which is why they give you a pretty good deduction just for having kids under a certain age. When you do your taxes make sure you have all of your children’s Social Security Numbers ready so you can enjoy the refund they’ll get you. Usually you can get up to a thousand dollars back for each child you have, which can really help take some of the burden off of those daily costs you acquire. Of course, a simple deduction isn’t all you’ll get for having children. If you made a lot of doctor visits, had to buy school uniforms, or are starting a child out in college then you may be entitled to even more money back. Make sure you bring up any major expenses when you talk to your accountant or look for the deductions when you file yourself.

6. Donate
If you tend to make a bit too much for a return, or just want a little extra back then make sure to donate this year to help out yourself as well as others. The government looks fondly on people who donate throughout the year, so find a charity you can appreciate and give a little extra love to them. It doesn’t matter if you’re spending time passing out food baskets, making soup or just giving away some cash, as your efforts will certainly be rewarded. There’s a lot of agencies in the country that need as much help as possible. If you’re looking for a quick way to help out then send a check to your favorite organization. It doesn’t matter if its feeding kids school lunch, saving the whales or creating reading programs for the illiterate, as they all count toward your donation. Of course, if you’re on a tight budget and don’t have extra money to give then try going through your old clothes or items you don’t use anymore and donate those. Make sure you get a receipt for all of your donations though as you’ll need to prove it on taxes.

7. Utilize 401K
Your retired you is in love with your 401K, but even now you can benefit from this amazing program. It doesn’t matter if you’re just starting out or are nearing retirement as your 401K is your ticket to some major discounts this year. Each paycheck you’ve set aside a bit of money to go straight to your 401K, which is great. However, if you plan on adding a little or a lot more to the plan then this money might be a great deduction on this year’s taxes. Make sure you keep track of what you put back so you can put it into your tax information. The more you lose throughout the year to the 401K the more you might get back with your return. Of course, you may want to talk more with an adviser to work out what the 401K can do for you now and in the future before you decide to file taxes.

8. Loans
Loans can be a sore subject for a lot of people. Whether you needed a loan to go to school, buy a car or help with work related expenses, you may be able to find a little bit of a write to help you get your loans sorted out. A lot of people go into filing taxes without considering some of the major financial decisions they made this year. However, these expenses can really help you out when you lease expect them to. For instance, if you’re a student who is paying down some of your student loan debt then you should get paper work stating how much interest you paid during the year. If you’re like most students it certainly feels like a whole lot of money. When you file make sure to bring this in as you may find you’ll get some of that interest money right back into your pocket. The same can be said for mortgages. If your home acquires a lot of interest then see if you can write it off to help you pay down that loan a lot more. You may find that paying your debt can actually be pretty rewarding.

9. File Electronically
Filing online is a pretty popular trend these days. Most people like to get their taxes done online because it saves a whole lot of time and money. Generally when you file online you don’t have to pay anyone to do the work for you. There’s a lot of easy to use software that will guide you through all of the steps so you don’t have to give up any of your return money. Filing online also means that your taxes are going to be looked at much faster than taxes that are mailed in. This could lead you to get a bigger discount, which is always really nice. Of course, since your taxes made it to the IRS faster, they’ll always get back to you faster, which is another added bonus of filing online.

10. Ask Questions
There’s never any harm in asking questions about your taxes. In fact, asking questions can actually lead you to discover some deductions you might have previously missed. Make sure you know all of the free agencies you can call and talk to for free before you actually file. This will allow you to feel a lot less stressed about filing which will ensure you won’t make mistakes an will feel better about the deductions you do have. There are also numerous ways to find answers to your questions online which can help you further your search for deductions even more. If you’re having trouble finding a source your comfortable with then try looking for information on the IRS page as they often have an FAQ section as well as outside links to websites that can help you get your taxes filed with ease. With a little research on your part, both online and through phone calls, you may find some pretty amazing deductions you didn’t know existed.

There’s not a whole lot of people who enjoy filing taxes, but most people do love the return check! Instead of worrying about getting your taxes finished try thinking about the end result as it will motivate you to feel confident about your taxes. With these tips you should be on your way to a better return, so all of those stressful moments will be gone in no time. Now, the only thing you’ll have to worry about is how you plan on using the return.