As every tax season draws to a close, most Americans inevitably find themselves stressed out about filing their returns and getting them done in time. Many a time last minute tax calculation and filing can cause oversight and error, and the taxpayer may end up paying more than he or she needs to or vice verse. To make tax filing a less painful experience, a few tips can help.
The IRS has often highlighted the need for adequate planning and care in filling out the form so that errors of critical information like social security number, address, name and income can be avoided. Misspellings both in the taxpayer’s and the dependents’ names can also prove to be greatly inconvenient. Special care must be taken to enter the right filing status. It helps to read and re-read the entire form thoroughly before actually filling the information.
It is also recommended to use the online filing form for convenience and speed of processing. With the online form, the tax payer has the advantage of receiving an acknowledgment quickly. Errors are also identified and corrected easily and early by e-filing tax returns. Refunds can be deposited into your account directly as quickly as within 10 days. Easy to use, quick and fairly simple, the e-filing system is now used by 2 out of every 3 tax payers in the US. The service is available 24×7 and makes tax filing less time consuming than before.
For those who cannot pay their complete tax dues within the deadline, it is very important to at least pay as much as possible to reduce the penalties and interest that will be imposed for non payment. The IRS may also agree to offer short extension on an individual basis if valid reasons for non payment are given. Remember that paying 90% of the tax dues by deadline can help avert penalties.
Checking the calculation twice before filing the return can help uncover any addition or subtraction errors well beforehand. The same goes for the standard deductions claimed. Eligible tax payers can save substantial money by using these deductions correctly, especially since these were increased in the last tax reforms. Remembering to sign the form is also critical because without the signature the return is not complete.
You should not forget to take into account the recent changes under the American Recovery and Reinvestment Act to take full advantage of tax breaks and applicable benefits. Some of the notable changes are the ones outlined for economic recovery like home buyer credit, energy saver benefits and unemployment benefits.