Online Tax Preparation: Tips on Making the Switch
The IRS encourages taxpayers to prepare and submit their taxes online, which is why folks that take this approach are often rewarded with a faster return.
If you’re not sure about switching to online services, these tips will help decide if it’s the right decision to make.
Many employers, banks and real estate companies are pushing taxpayers to opt into paperless service in order to eliminate the paper copies that usually come through the mail.
One great reason to do this is that you have access to the tax forms (W-2s, 1099s, etc.) at any point and do not have to keep track of one single piece of paper.
Take Advantage of All Possible Tax Credits
There are several tax credits specifically designed to help those in the middle or lower-middle class save some money on their taxes.
If you think you might qualify and plan to prepare your taxes online, you will want to research the following tax credits. Some online tools will even help determine if you qualify.
- Earned Income Tax Credit
- American Opportunity Tax Credit
- Lifetime Learning Credit
- Child and Dependent Care Credit
- Savers Tax Credit
Deductions for the Self-Employed
If you own your own business, you may be able to take advantage of many money saving deductions. You have to be very careful here, of course, and make sure you’ve been keeping very good records. You may be able to deduct your home office if it’s used exclusively for business as well as travel expenses, mileage, property and even some equipment.
Check Your Work
One benefit of doing your taxes online is that you can benefit from the checks and balances that your software provides.
It’s important to remember that any software is only as good as the information that is entered. So be careful and double check each and every entry, especially as it is related to your income.
You do not want to inadvertently draw the attention of the IRS because of a discrepancy between your W-2 and your tax return. So double and triple check before you submit!
If It Gets Complicated, Get More Help
Computer software is great for straightforward tax returns, but if your return ends up getting more complicated than you expected or if you have had a significant change in your tax status over the last year, you may still want another set of eyes to look it over before you submit to the IRS. A tax professional can give your return a quick glance or dive deep and help you double check problem areas and figure out ways you can save more money this year.
Success Tax Relief: Helping Taxpayers File The Way They Want
Success Tax Relief can help you prepare your taxes whether you want to file online or submit your return by mail. Contact us today to make sure you’re getting the biggest refund possible.