Tips for Filing Your Taxes Like a Pro
Tax season is underway, and this year’s filing deadline is Tuesday, April 15. At Farm Bureau Insurance of Tennessee, we believe that being prepared for all aspects of life is an important part of living well. To help you feel prepared to file your taxes and get the most out of your return, we asked our friends at Farm Bureau Tax Service to share their top tax tips.
8 Tips for Tax Season
1.) Keep track of important documents.
The first thing you need to do is gather and organize all the documents you’ll need to file your taxes. This may include W-2 forms, 1099 forms, important receipts, Social Security statements, and other relevant paperwork. Last year’s return can be a good checklist for what you’ll need.
2.) Decide who will prepare and file your taxes.
Some people feel comfortable tackling their taxes on their own or with the help of online tax filing software, but others might seek professional assistance. There are plenty of advantages to choosing to work with a tax professional, whether it’s a certified public accountant (CPA) or a tax preparation company. Professionals provide expert knowledge and personalized guidance to minimize errors and save you time and stress this tax season.
For personalized assistance from professionals who understand the unique tax needs of individuals and businesses in Tennessee, the Farm Bureau Tax Service is an excellent choice. Their team of experts is well-versed in local tax laws and can provide tailored advice to help you maximize your deductions and minimize your tax liability.
3.) Set aside time.
Whether it’s dedicating the weekend to filing on your own or making an appointment with a tax professional, make sure you set aside enough time to prepare your taxes. Knowing when and how you’ll file them can also help put your mind at ease.
4.) Understand the process.
It’s important to know these key steps to filing your tax return, even if you’re working with a tax preparer:
Gather your documents. Create a designated storage place, so you can find them easily.
Choose your filing status. The most common filing statuses are single, married filing jointly, married filing separately, and head of household.
Choose your deductions. Depending on your tax situation, you may choose to take the standard deduction or to itemize your deductions. Itemized deductions involve listing specific expenses and may be beneficial if your deductible expenses exceed the standard deduction.
Calculate your liability. This involves applying the appropriate tax rates to your taxable income and factoring in any tax credits you may be eligible for. Tax credits directly reduce your tax liability and can lead to a higher tax refund or lower tax bill.
5.) Be alert to new documentation.
Look out for any IRS updates or changes to your financial situation that could impact your taxes. Accurate records of all your financial activities help make sure that your tax return reflects your current financial standing and maximizes your potential deductions.
If you do receive updates or questions from the IRS related to your taxes, a tax professional can help address any issues on your behalf.
6.) File an accurate return.
Take the time to double-check all the information you provide and make sure that you haven’t missed any important details before you file your taxes. Simple errors or omissions can lead to delays in processing your return – or worse, trigger an audit. If you’re unsure about anything, seek clarification from a professional.
7.) Plan for an extension now if you need one.
Life happens, and sometimes, you may need a little extra time to file your taxes. If you experience unforeseen circumstances or have a particularly complex tax situation, it may be worth requesting an extension. To get an automatic extension of six months, you’ll need to fill out IRS Form 4868.
One important note: Filing an extension grants you more time to submit your return, but it doesn’t extend the deadline for paying any taxes you might owe. If you anticipate owing taxes, estimate the amount and pay it by the tax deadline to avoid penalties and interest.
8.) Start on next year's taxes.
It may sound early, but preparing for next year’s taxes now can save you hassle down the road. Keep track of any changes in your financial situation, make note of deductible expenses, and organize your important documents. You’ll thank yourself next year for being so well prepared when tax season rolls around.
Conquer Tax Season With Confidence
Tax season doesn’t have to be a headache if you follow these friendly tips from Farm Bureau Tax Service. Remember to stay organized, and don’t hesitate to seek assistance if you need it – that’s why our friends at Farm Bureau Tax Service are here! Connect with them today to get started on your tax return.
