Taxes are due April 15, and this time of year always brings a number of pressing questions for American taxpayers:
Whether you’re filing taxes for your business or just for yourself, tax season can feel overwhelming. But with some strategic planning and helpful tools, you can avoid feeling the stress.
Here are 7 helpful tips for an easier and less stressful tax season.
Table of Contents
1. Start Your Tax Prep Early
Planning ahead for tax season has multiple benefits. Besides having the peace of mind that it’s one less item on your to-do list, you could avoid costly tax penalties.
2. Get Organized
Create labeled folders for all types of tax documents, including both hard copy files and files on your computer: Business Expenses, W-2 Forms, Charitable Donations, and more.
3. Decide Whether to File an Amended Return
It could be time-intensive to submit an amended return, but the deductions you could recoup by submitting one may be worth it depending on a variety of factors.
4. Consult a Tax Professional
5. Get Your Refund As Soon As Possible
Be aware of the factors that can affect the timing of your tax refund.
6. Take Note of Other Important IRS Updates
- The employee contribution limit for 401(k), 403(b) and the majority of 457 plans is now $19,500 – up $500 from 2019.
- For those 50 years and older, the catch-up contribution limit has increased from $6,000 to $6,500.
Make it your goal to put aside a couple extra dollars in your retirement account at work each month. Doing this will lower your taxable income, and help cut back on your tax bills going forward.
7. Use eFax to Do More Than Fax
As Tax Day approaches, put these seven helpful tips to use so you can streamline your tax preparation and head into Tax Day confidently.
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