Doing your taxes can be a very difficult task if you are not good with calculations. However, you can avoid all the hassle of preparing and filing taxes if you follow some IRS tips.
This is probably the biggest mistake we make while doing our taxes. We wait till the end of the year to prepare tax return statements and review our accounts. A simple tip to avoid the last moment chaos and hassle is to keep your accounts in order from the beginning of the year. You may overlook a number of tax deductions and savings opportunities if you rush to meet the tax filing deadline. You can also make calculation errors and making mistakes while preparing tax statements can lead to stiff penalties. So don’t delay tax preparation unnecessarily.
Most of us don’t know this, but availing the free file option can help us prepare tax return statements in a strategic way and also allow us to spot tax deduction opportunities. If you earned less than $57,000 this year, use a free tax software application to do your taxes. However, if you earned more than $57,000 and can do your taxes without the assistance of a tax preparer or a CPA, you can use free fillable forms (e-IRS forms). This can help you save money that you give to CPA for preparing taxes.
Whether you rely on a CPA to prepare your taxes to prefer to do your taxes on your own, e-filing can ease the process of tax fling and preparation. It is probably the easiest and safest way to prepare and file taxes on time.
Though you can prepare your tax return statements yourself, it is always safer and more convenient to rely on professional assistance. Hire a CPA who can manage your accounts and answer your tax-related concerns. You can also count on CPAs to cross-check your tax statements and correct any error before submitting it. Another way a professional can help you with tax filing is spotting every viable opportunity to reduce tax liabilities. The missing available deductions are becoming more costly every year with the increase in the top brackets every now and then. A certified public accountant can help you recognize the deductions that you might need to reduce your overall tax bills.
Preparing tax needs expertise and knowledge. Since a single mistake on a tax return can cost you a lot, your CPA or tax advisor can help you in reductions of your mistakes. Even if you do make a mistake and get penalized by the IRS, your accountant can help with reductions in your penalties. Another way to avoid mistakes is rely on software applications, if you have accounting knowledge and are just concerned about minor calculation errors, relaying on a software application for filing and preparing taxes is a more convenient and cost effective option.
By following the above mentioned IRS tips you can easily prepare and file your taxes before the deadline.