What to Consider When Filing Your Personal Taxes

Is doing your personal taxes a chore you keep putting off? Tax preparation is a task that many people put off until the last minute because they don’t want the hassle of gathering their paperwork. Whether your tax situation is complex or straightforward, professionals that offer tax preparation in Reno, NV, want you to know that doing your taxes doesn’t have to be hard. Here are some tips to make tax season easier to manage.

Plan Ahead

Don’t wait until the last minute to file your taxes. If there’s any problem with the software you use, this could affect when the IRS receives your tax return. Tax returns received after the due date of April 15 can incur a penalty that costs you money.

Consider Filing Electronically

There are benefits to filing electronically rather than using forms you fill out and mail in. First, online filing is more accurate. There’s less room for mistakes because of ineligible handwriting or calculation errors. Software programs are designed to catch errors that could affect how the IRS receives and processes your return.

With electronic filing, you’re notified when the IRS receives your return. Sending your return through the mail doesn’t give you this peace of mind.

Lastly, filing electronically gets you your refund faster. The sooner the IRS gets your return, the sooner it can process the paperwork. For even faster access to your return, consider having the money electronically deposited into your bank account.

Paying Your Tax Bill

Not everyone gets a tax refund. Some people end up owning taxes at the end of the year. If you’re in this category and are concerned about paying your tax bill, take a breath. Next, contact the IRS and get set up on a payment plan if you can’t pay the bill in full. The IRS offers taxpayers flexible payment options.

Don’t Use Your Credit Card to Pay Your Tax Bill

Many people do this and end up paying the minimum on their credit card each month. The better choice is to take advantage of the low-interest payment plans the IRS offers. Interest payments vary depending on the year, but in the past, they’ve ranged from 3%-5%. This is a much better rate than most people get through their credit card company.

Keep Track of Expenses throughout the Year

Do you deduct expenses on your tax return? Tax preparation companies urge you to stay organized throughout the year and keep track of your receipts. Too often people lose out on expense claims because they haven’t recorded their expenses properly. Don’t throw your money away this way.

Let the Professionals Handle Your Taxes

If the thought of doing taxes makes you want to run away, let someone else file your return. For professional income tax preparation in Reno, NV, contact Advantage Tax and Business Services. Learn more about our services by calling (775) 622-4804.