You’re Doing It Wrong: Here’s How to Get the Most out of Your Taxes
It’s never too early to start preparing for tax time. Click here to find out how to get the most out of your taxes and bring home the biggest return.
Are you already dreading tax day? You’re not alone. Money stresses out 62% of Americans. If you’re afflicted by tax-related stress, one thing you can do to manage your worry is to learn how to get the most out of your taxes. Here are a few tips to use for the next tax filing deadline. With any luck, you’ll be in great shape with this tax return cheat sheet. If, after reading below, you still can’t bare the thought of tax day, you can search ‘best tax accountant near me‘ online to find a trusted company in your area to do the work for you.
Get to Know the Right Forms
How do you do your taxes the best way? One smart place to start is sifting through all the necessary paperwork.
If you’re doing your own taxes and you visit the IRS website, it’s easy to be overwhelmed by all the forms available to download. With so many forms to complete and the April deadline looming, you may want to head to a site like irs extension online which will help to extend the deadline by 6 months, giving you more time to complete everything.
Here is a handful of forms you may find yourself reaching for to file your tax return next April.
- Form 1040: This is the main form most taxpayers deal with. It’s where you’ll report your income and calculate your gross adjusted income (your taxable income minus deductions and exemptions).
- Schedule A: This is the form you’ll use to list all your deductions. Whether you have medical expenses to log or property taxes to list, here’s everything you need to know.
- Schedule C: If you’re an independent contractor, this form applies to you. You’ll use this document to list all your income and losses from freelancing work as well as any business expenses.
- W2: You’ll receive this form from your employer a few months before the filing deadline—typically in January or February. It details how much your employer paid you, info on retirement fund contributions, and taxes withheld.
- Form 1098: There are variations of this form that list how much you paid during the past year on the mortgage, tuition, or student loan interest.
Learn About Tax Law Changes
Tax laws can change from year to year, so it’s wise to brush up on any changes.
For 2019 tax brackets changed by about 2%. Retirement contributions also increased, and so did the standard deduction.
Maximize Your IRA Contribution
If you haven’t heard it already, one popular piece of tax advice from accountants is to maximize your IRA contribution. Each year, you have until tax day to reach your maximum.
In most cases, people will benefit from taking this step since you can deduct your personal IRA contribution regardless of how much you make. If you get your 401k through your job, you can also deduct your contribution if your income is under a certain amount. You can also look at alternatives to a traditional IRA to help diversify your portfolio, and a Gold IRA is one such option. These see you holding onto physical precious metals until their value rises in the future. If you’re interested in this, you can read some gold IRA reviews of major companies to get an idea of which one is best for you.Â
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Save Paper and Money by E-Filing
If you’re wondering what you need to do your taxes or where to do your taxes, the answer is relatively simple. You can do it all on your own.
It’s free to do the filing on your own through the IRS website. You can also use a free or paid preparation software program. When you use this type of website, you often have the use of tax audit services which will help you navigate if you are ever audited by the IRS.
The benefit of e-filing is that it’s possible to save time and money with preparation. You’ll also reduce paper waste.
How to Get the Most Out of Your Taxes and More
Now you know how to get the most out of your taxes. But don’t stop there. Keep tuning in to our site for more budgeting and lifestyle advice.
