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Tax day is April 15th. Whether you’ve already filed or you’re desperately putting it off until the last minute, it can be a stressful time. These tips will help make tax season a little easier for you this year and, well, for the rest of your life.
Don’t overlook write-offs
Write-offs are a great way to decrease your taxable income. But what exactly can you write off? TurboTax tells us that items like sales tax, health care premiums, business expenses, charitable donations, and even paying a babysitter can be a write-off. Just be sure you have documentation for them all to prove their legitimacy.
Avoid “ghost tax preparers”
These ghosts are anything but friendly. According to Business Wire, “tax preparers are required by law to sign (typed or handwritten) federal and state tax returns they prepare for a fee.” However, ghost tax preparers will prepare your taxes but not sign them. Therefore, if there are any issues with your taxes, you are accountable. If you’re having your taxes prepared by a professional, make sure they sign before sending them.
Why you shouldn’t file an extension
Even though it happens every year, let’s face it, sometimes tax season can sneak up on us. If paying taxes is the reason you’re filing an extension, you should think again. Extensions give you extra time to file but not extra time to pay. Even if you file an extension, you have to pay your taxes by Tax Day (April 15) or you can face potentially expensive penalties.
“Gig workers” need to pay extra close attention
Gig workers are those who work for Uber, Postmates, or do freelance work like writing and are paid per “gig” as opposed to hourly or salary workers. If you work a gig job, there are a few important tips to know before you file your taxes this year. Be sure you set aside money for taxes if your paycheck doesn’t take them out, claim all the deductions you qualify for (car service, gas, mileage, etc.) and be sure you get 1099s from all of your gig employers.
Don’t toss your returns!
When you receive your return check or reluctantly send off the check you owe, keep all of your tax return paperwork. Tax Act suggests you keep your last three years of tax returns in case anything should happen. Three years is the amount of time the IRS can legally audit you. Hopefully they never will and you can shred those returns in three years.
xx, The FabFitFun Team
