Federal Tax Help and Tips
Tax time starts to strike home every year as we approach the Super Bowl. In times of recession, most Americans look forward to this time of year even more if they normally get a refund. Before you start to take a look at you taxes, its general best to pursue federal tax help before you proceed. The following are some federal tax help tips that you can use to help you save time and maybe even some money this tax season.
Federal Tax Tip #1 – Find and Use Tax Software
Ok, so many of us just don’t have the money to seek professional accounting help in-person. The next best thing to save you time and money is to find a tax software or Internet solution that meets your needs. The majority of tax software programs will support the majority of the Federal 1040 tax form and schedules. If you are looking for an alternative for completing your business taxes, you will want to ensure that the appropriate schedules are supported by the software solution that you decide to purchase. Other factors to consider when choosing tax software are the price, if the company will save your return to import the following year, and what chat or help options are available in the event you need support with the software package.
Tip #2 – Straighten Your Records and Make a Filing System for Next Year
Lets face it, January is a bit too late to “get religion” and start a new filing system. Use the opportunity for collecting your supporting documentation for your taxes as a time to create a maintainable system for next year. Some folks do this on a daily basis, others on a monthly. When you just “save” receipts and forms to straighten out at the end of the year, you just create extra work for yourself when its time to complete your federal and state taxes. If you are having to seek federal tax help from a professional, they are going to demand that your files are in order before proceeding.
Tip #3 – Verify the Requirements for the 1040 EZ and 1040 long forms
If you are a middle class American and do not own a house, then you will likely be able to just use the 1040 EZ short form. If you own a home, bought or sold stock, etc you will likely have to use the 1040 long form. If you qualify for the 1040 EZ, then you will not need to itemize deductions unless you are going to exceed the standard deduction for the year. Many taxpayers fill out the 1040 form in error when they could have saved time by using the shorter EZ form.
Tip #4 – Free Tax Preparation and e-Filing
If you have an adjusted gross income (AGI) that is less than $56,000 then you may qualify for the free IRS online federal tax preparation software and e-filing. Don’t purchase a product before checking to see if you can use the IRS product for free. If you can’t determine if you qualify for the service, you can contact the IRS via their website (irs.gov) and you should hear back from a representative withing 72 hours. If you don’t, then try again before giving up.
Tip #5 – Get Federal Tax Help
Get help if you are not positive about how to proceed with your taxes. Even if you “Think” you know what you are doing, but have not seen an accountant in a number of years, this might be the year to use one. Many times, tax payers will miss significant changes in tax law that will benefit their refund. The extra amount that you pay an accountant (which is deductible if itemizing taxes) can well be worth it for many tax payers.
Tip #6 – Don’t Fib
Don’t give into the temptation to fib on your taxes. Who wants to compound their consumer debt with potential IRS penalties for claiming that “$10,000 Good Will donation” that you “lost” the receipt for? Not me. The potential increase in your return to help pay down debt to avoid having to consolidate debt or pay other bills just isn’t worth it!