Tax Tips
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Never be intimidated by all the text you have to read. All the publications were written for you to absorb properly by reading, and not by skimming over them. Ninety-nine percent of the time they're instructions that are crucial information so that you can make the right decisions for your return.
Keep updated. There are several announcements that come out every tax year and range from modified definitions in terms used, to new laws and provisions that may be of relevance, to new deductions or credits, et cetera.
Check your arithmetic. Miscalculation—due to errors in basic addition and subtraction, that is—ranks as the number one mistake of taxpayers.
Don't fret. If you think all the number-crunching, data-gathering, and instruction-reading are too difficult to you, that's quite normal. You can opt for professional help or electronic help. Not all solutions are free of charge, though, but at least it'll be less taxing on you. You can even try using all three forms (by yourself, with a professional preparer, and with tax software) then decide which combination fits you best.
Filing online may also interest you: e-file lets you send in your return via the web, without the use of paper. You also get your refunds, if any, quicker. If you stick with paper-based filing, however, opt for directly depositing your refund.
Keep all your receipts and categorize them under descriptive labels. Examples include contributions to charity, medical expenses, mortgage, and investments. They can be used for deductions.
Still on receipts, remember to get a receipt after filing. This helps make sure you can prove that you have, indeed, filed.
Know the pros and cons of the filing status. Choosing one over another might mean a reduction in the tax you have to pay!
Do not fear the audit. It doesn't always mean that you've done something wrong. It simply means there are certain items they need to verify. If you're confident you've done every step properly, you have nothing to worry about. Besides, if you've kept all your receipts as mentioned, they'll also serve as proof in case they'll be asking for them.
Think you won't be able to pay the full amount by the due date? Form 9465: Installment Agreement Request [PDF] may be handy. You can request monthly installment payments for full or partial amounts when you file, or when you get your bill.
Next: Tax Tips: Tax Deductions
For more tax tips straight from the IRS, visit their Tax Tips here [link]
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