Basic Tips For Filing Tax Returns
Follwing these tips will help you to have your tax return processed quickly
and accurately.
Make Sure Your Return is Legible and Neat
In school, your teacher may have told you, "If I can't read it, it is wrong."
The IRS may take that attitude as well. At very least, if they cannot understand
what you have entered on the various forms and schedules, it casts doubt on
the accuracy of the filing and may slow the processing of the return or even
result in an audit. Print in all capital letters and write in black ink to
help eliminate this common problem.
If You Owe Money, Include Payment
If the end result of your tax return form is that you owe the IRS money, be
sure to include a check. In addition, you should file a Form 1040-V - Payment
Voucher to verify the amount that you are paying. The IRS requests that you
not staple the check itself to your tax return. Put it instead in the envelope
in which you put your tax return form(s). Using the Form 1040-V will speed
the efficiency of the IRS in processing your return.
Refer to Last Year's Tax Returns
Look over the tax return that you filed last year to help speed filling out
this year's form. This will help you to remember things like sources of income,
credits, deductions, and so on. Pay attention to things that might have changed
since last year however, such as number of dependents, amount of standard deduction,
and so on. It will also help you to know which forms and schedules that you
need to file.
Get Help If Needed
If there are issues that are not clear to you regarding your tax filing, you
can get help from the IRS themselves or from a tax accountant or CPA. It may
be well worth it to have a professional tax preparer take care of your taxes
if you have trouble with knowing how to handle special circumstances or if
you are not comfortable with current tax law. The IRS has made efforts to make
filing your taxes easier. You can call them at 1-800-829-1040 for assistance
from a live person. Take advantage of all of the free resources that you have
at your disposal.
Some find tax preparation to
be complex, so don't be afraid to go with a professional if need be. In the
long run, you may very well save more in deductions that your tax preparer
will
suggest
than the cost of their service itself. You don't have to know everything,
just know the people that do.
Always File On Time!
Make sure that your taxes are filed by the appropriate time, normally April
15. If you owe money to the IRS, file on time anyway. If there is absolutely
no way that you can file on time, be sure to file an extension with Form 4868.
You will still have to estimate your tax even if you file for an extension,
so if possible, just do the extra work before the deadline and file on time.
Make a Copy of Your Tax Return
You will need a copy of this year's tax return when filing next year, so be
sure to make a copy of all forms and schedules that you file this year for
reference and use next year. Once you have mailed your return, it is a little
late to make copies.
Round Dollar Amounts to the Nearest Dollar
The IRS allows you to round dollar amounts to the nearest dollar when entering
information onto tax forms. This makes it easier for them to process your return.
You are less likely to make mistakes when rounding to the nearest dollar as
well. Since math errors are one of the most common mistakes, make it easy on
yourself by sticking to round dollar figures.
Keep Accurate and Complete Records
When filing this year, probably the last thing on your mind is when you will
have to do this next year, but a little preparation now will pay off later.
Since you must keep records for three years, having a good filing system for
receipts and records could alleviate a potential nightmare if you should ever
get audited.
