Usually, tax planning is not included on most people’s lists of new year’s resolutions. However, maybe 2014 ought to be the year when you make the effort to understand more about your taxes. This will allow you to correctly plan and organize your responsibilities.
This resolution will help you once tax season arrives, and it might result in you saving more cash over the long run.
Here’s some advice to help you get started on achieving this goal:
Organize your tax file for 2014. This might be an online file, where you can scan transactions and documents over the course of the year. This will impact on your total tax amount. Alternatively, you could use a bin or folder to store the details.
The advantage of electronic files, like Turbo Tax 2014, is that when your tax is due, you can just email the data to your accountant. Then, he or she can keep the file for use during an audit. Ensure that you have sufficiently backed your data up, just in case an unforeseen problem arises. Including notes on your tax documents will help your accountant understand the transactions, which facilitates the filing procedure.
Examples of important tax documents are: 1099s, W2s, escrow documents for purchase, K1s, receipts for car registration charges and real estate tax, receipts for additional tax deductible purchases, and letters confirming charitable donations made to recognized nonprofits.
All the best to everyone for a healthy, happy, successful and tax conscious 2014.
The deadline for filing taxes for 2010 is fast approaching. Following are ten last minute tax tips that are provided courtesy of the Internal Revenue Service. These tips can make last minute tax filing a lot easier.
1. File via e-file. It is secure and simple. Most people use this form of filing as opposed to filing out a paper tax form. The IRS has estimated that this form of filing has been used almost a billion times since its inception two decades ago. Nearly seventy percent of tax payers file via e-file.
2. Check ID numbers carefully. These numbers are extremely important and it is very easy to accidentally make a mistake with any one number. A person that gets a SS number or other figure wrong will face delays in getting a tax refund.
3. When using a paper copy of the tax form, be sure everything is legible. Not everyone has great handwriting. It is important to fill out the form clearly; if the IRS cannot understand it, then there will be problems.
4. Make sure the right figures are placed in the right places. Tax forms are not the easiest forms to understand and it is all too easy to make a mistake.
5. Sign the form. If it is a joint return, then both parties should sign, even if the form only lists income made by one party. Date the form too.
6. Double check the mailing address. It can be found on the IRS website. Make sure to write the address out clearly and properly.
7. When mailing a payment via snail mail, the check should be made out to the US Treasury. It should not be stapled to the tax form. It should include a person’s SS number and the phone number that he or she can be reached at during working hours.
8. Using electronic payment methods is not only safe but also quite simple. One can use a debit card or credit card.
9. One can file for an extension of time. This gives a person a few more days to file. However, the payment deadline will not change even if an extension is granted.
10. For more information, be sure to check out the IRS website.