I don’t really remember having a great deal of classes on how to fill out a tax return or cut into my tax debts when I was younger. In fact, learning about taxes is something most people learn on the fly. Very few people learn about this from Mom and Dad and the school system certainly doesn’t spend much time on it. Because of this, most of us grow up with a very limited knowledge of taxes and how to save money when you file. For those of you that still feel a bit challenged by the whole process, here are several tips that can help save you cash when April rolls around:
Also, make sure you check out my post on Free Tax Filing Online!
Tax Filing Tips
Hit your deadlines – Simply by filing on time you can save a ton of cash. Filing on time also will put you a step ahead of a large number of Americans right out of the gate. The penalties and fees for filing late are insane and you can quickly find yourself with a rapidly increasing tax bill.
Take advantage of technology – With all the various software programs, apps and so on, taxes are generally automated. From tax preparation software to organizing your receipts throughout the year, taxes are made so much easier if you use the technology. If you can follow onscreen prompts, you can do taxes in 2014. (You can checkout options for Filing for FREE Online here)
Ask when you are uncertain – You would be surprised at the number of people that just guess if they are unsure about something tax related. This is a quick recipe for long term problems. This will eventually catch up to you and likely cost you money. If you are unsure of the most minute thing, ask someone that knows. Ask the IRS, Uncle Bob the accountant or the local librarian….Don’t just guess and hope for the best. That never works out well.
Be organized – If you have all of your receipts, expenses and paperwork in order, saving money on taxes will be a virtual guarantee. Likewise, having them all over the place is going to cost you.
Take what is offered – There are so many tax programs out there to help folks out and a great many people pass right over them. From the tax credits to proper dependent claims, a lack of awareness is costly in the tax world. If you are offered something, take advantage of it. Don’t give up on something just because it is complicated. Get some help and reap the rewards!
Pay someone if you have a complicated return – If you have a tough return, or if you simply are far too intimidated to do your own, have a pro help you out. The one great thing about a good tax professional is that you will generally get all the money coming to you. In most cases, you will save enough to pay them their fee plus some.
These are just a handful of way to save money on taxes. What other ideas do you know of that can help at tax time?
Note: I am not an accountant :) These are just some tips that have helped me personally.
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