Filing your taxes can be a nerve-wracking experience for those who’ve never done it before. Filing correctly can lead to a comfortable tax refund, while mistakes come with potentially serious financial consequences. While a tax service can help you get on the right track, there are several parts of the process you’ll need to handle on your own. Follow these tips for success.
How to File Your Taxes
1. Start Early
Yes, it is possible to complete your tax forms and send them out successfully the day they’re due. However, you’ll have a much less stressful experience if you start ahead of time. You should receive your wage statements from your employer within the first few months of the year, so start your filing process then, either with a tax service or on your own.
2. Get Your Papers Together
In addition to your W-2 or 1099 forms, you’ll need any other documentation you can find about your earning and spending during the year. Gather your receipts for any donations or work-related purchases you’ve made, as well as statements regarding education and childcare costs.
3. Communicate with Your Parents
If your parents are claiming you as a dependent on their taxes, that limits the deductions and benefits you can apply for with your filing. Make sure you understand the details of their filing plan and agree in advance about your dependent status. Your parents should not claim you if you are financially independent.
4. Double Check
If you start your taxes in advance, you’ll have time to go over your math again before you send off your forms. When you check your numbers, compare them to your bookkeeping documents for accuracy.
5. Learn from the Process
During the year, your employer withholds taxes from your paycheck, and your tax return is how the government repays any excess. If you are getting a sizable return, you could ask your employer to withhold less during the year, freeing up those funds for your immediate use. Pay attention to these numbers and talk to your boss about adjusting your withholding.
If you’re having difficulty filing your taxes correctly, Tostrud & Temp, S.C. in La Crosse, WI, offers thorough tax services. Their experienced accountants will help you file correctly, receive the maximum deductions and credits available in your situation, and adjust your approach for next year. To get started, call (608) 784-8060 today or visit their website for more information on their personal and business tax services.