Categorized | Taxes

Tax Planning Advice To Save Money

Dealing with the April 15th tax filing deadline tends to be a huge headache for many people. Individuals that need to pay taxes often wait until the day of April 15th to mail in their taxes instead of paying early and getting the headache over with. While paying taxes is not something that is enjoyable, you can easily make this deadline a little easier on yourself. Here are some tips to help you get organized and to save money on your taxes:

  • Prepare! One of the best ways to file your taxes is to take time to organize all of the documents you will need ahead of time. Keep a monthly spreadsheet with a list of all your related expenses and deductions that you can take. This helps to make it easier for you to file your taxes. The IRS will ask for documentation of everything that you claim on a tax return and it is important that you get all of your documents together and organized correctly in order to prove that these deductions are eligible. Look online to see what items and charges are eligible as you could be missing out on a lot of business expenses that could save you a significant amount of money on your tax bill.
  • Make sure you are using the right forms. Individuals that are in higher tax brackets or those that run their own business will need to use several forms. If you have a lot of medical expenses and you deal with a lot of deductions, you will have several forms that you use. It is important that you use the right forms when filing your returns. This will help you to save money on a penalty in the event that you did not file your returns correctly.
  • Choose the right person to file your taxes. If you choose to use a program like TurboTax to help you file your taxes, consider paying extra money to have a professional review your taxes when you are complete. They will review them for errors and may be able to save you a significant amount of money by finding expenses that you did not list. Always choose the right way to file your taxes and to work with the right person or program in order to get back the maximum amount of money possible.
  • If you are getting a refund, choose to file your taxes electronically. This will speed up the time it takes to get your money back as most people will see it in their account within 14 days compared to 6 weeks or longer. Anyone that waits until the deadline might also consider electronic filing of your taxes so you can save yourself from getting a late penalty from the IRS.
  • Always pay your quarterly taxes. This is one of the best ways to save money as you will reduce your entire tax bill by spreading it out into 4 equal payments throughout the year. The IRS has an online system that can be used to pay your quarterly taxes so you won’t need to worry about mailing them and having them arrive late.
  • Use a credit card that offers cash back incentives or other rewards to pay your tax bill. If you have to pay a lot of money you might as well get as much as you can out of such a large expense!

 

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