With the new tax plan in motion, this tax season may be or has been a bit trickier. Try not to let taxes stress you out, though. Here are the top 5 tips for tax season that will help you get through it with confidence.
TOP 5 TIPS FOR TAX SEASON
1.) Educate Yourself on the New Tax Law
Most of the changes that were set in motion with the new tax law will apply to 2018’s tax year. However, it is always a good idea to educate yourself – especially on the new tax law. Because of the new additions, you may have seen changes to your paycheck already. Be sure to check your current W-4 form to be sure you are.
2.) Don’t Wait to File
Waiting to file your taxes will only add stress to your life. However, life is very busy and we get tied up in daily events. But if you can, you should gather all of your relevant documents and information early. This will only benefit you in the long run. Don’t forget your property or real estate documents, proof of charitable donations, and any business, medical, or education receipts. You should also keep track of your interest and investment payments.
3.) Know Your Filing Status
Knowing your filing status is an obvious necessity. Whether you are single or head of household, your taxes will be different. Also, if you are married, don’t opt for joint filing right away. You should run the numbers to see which status makes sense for your situation.
4.) Be Charitable
Charitable giving is rewarded by the IRS. These are tax-deductible, so why not take advantage? If you do this or have done this, be sure to save your receipts and submit them. Also, if you have donated property instead of cash, “Publication 561” will help you determine the property value.
5.) Don’t Forget Any Deductions
Deductions can help reduce your taxable income – even if it’s just by a little. Applicable deductions include:
- Work-related
- Travel
- Debt interest
- Charitable donations
- Moving charges
- Costs related to job hunting
- Home office expenses for the self-employed
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