Taxes! Is it that time again? Whether you do your own taxes or pay a qualified tax professional, you probably get the same uneasy feeling in the pit of your stomach like most people. The paperwork, calculations, receipts, and the amount of time you spend can be quite overwhelming. Your ultimate goal is to get the money you are due as quickly as possible.
Here are a few tips to consider before filing your taxes this year so that you can have your refund in record time.
1. Begin working on your taxes before January 1.
Throughout the year, keep well organized and detailed records. The more thorough the records, the less time you will spend gathering the items you need. Keep charitable donation receipts, business expenses, and personal expenditures such as real estate, insurance, and medical bills organized in labeled file folders as you go. When the time comes, you will have everything you need at your disposal. You can either begin working on your taxes or hand everything over to your tax preparer.
2. Use tax software, an online program or a qualified tax professional.
Basically, doing your taxes by hand will take you longer than the other available methods. There are pros and cons to each of these choices so do some research and choose what is best for you. If you decide to use a purchased tax software, when finished you can either print the forms and mail, or e-file directly from the program. E-filing is the quickest way.
3. Make sure that the information you input is complete, accurate and calculated correctly.
As long as the numbers are entered correctly, you can assure correct calculations. If your return has errors, there will be a very long delay. Your tax return will be red flagged by the IRS and you can assure that you will be fixing it and filing again.
4. E-file your tax return.
Whether you are using a computer program or doing your taxes online, e-filing is the quickest way to submit your return. It bypasses the postal system completely!
5. Have your refund directly deposited into your personal account.
You can have the refund mailed to you, but having it directly deposited into your checking or savings account will be much quicker. You will not have to wait for the mail or drive to the bank to deposit the money when it arrives. This clearly saves you time.
6. File your tax return early.
The longer you wait to file, the longer it will take to get your refund. Beat the rush! Most people that owe wait to file their return until the last minute. File your return early so your return does not get stuck in the queue.
Each year I use TurboTax to complete my taxes. I import the information from the previous year and as long as no personal information has changed, this saves tons of time. Last year I e-filed my return the second week of February and both my state and federal refunds were directly deposited into my account by the end of the month.
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