(Newswire.net — December 19, 2017) — Filing your taxes for the first time can be a little intimidating. The rules and processes may sound too complex and hard to understand, but once you know how to get around it, it can be very rewarding. It is not really that hard if you think about it. You just need to pay a lot of attention to pertinent details.
Here are five tips on properly filing your taxes.
1. Organize all the required documents.
This may sound like a no-brainer, but you will be surprised that a lot of people face problems only because they have not organized their documents properly. Filing taxes is all about documentation. Keep track of all the forms you receive quarterly, semi-annually, or annually. These forms may contain how much salary you have made, along with medical insurance payroll taxes, or social security. Keep a personal folder where you can place all the important documents and keep it safe for filing. These documents will always be your starting point for filing taxes.
2. Seek help if you are unsure of how to file.
After securing all the documents you need, you are now ready to file. While most taxpayers turn to tax software each year to complete and file their returns, do not hesitate to seek help from either an accountant or a franchise tax operation if you are unsure what to do. This way, you won’t be an easy target for tax con artists. New taxpayers are usually targets of such scams so you need to protect yourself from this to avoid paying large unnecessary fees. You can also try to contact and seek help from a tax attorney, especially if you are running a business. You can learn more about how they work here: https://deanhineslawyer.com/tax-attorney-dayton-ohio/
3. Do not forget the tax deductions and credits.
Most new taxpayers often overlook deductions such as child and dependent care credit, state and local sales taxes, or earned income tax credit. Take note of these tax deductions and tax credits that you may be eligible for so you can reduce the amount of tax you must pay.
4. Report all your income.
Be honest when it comes to reporting every penny of your income. Whatever money you have earned from either income from a bank account or as cash on the side, it is all taxable income. This also includes tips that you have received as part of your job. All of these are taxable income.
5. Know what expenses you can’t deduct.
While there are several tax exemptions and credits that you may eligible for, there are also several expenses that are non-deductible. Make sure that the deductions you have itemized are actually deductible. Examples of non-deductible expenses are burial or funeral expenses, fees and licenses, broker’s commissions, home repairs, lost cash or property, professional accreditation fees, and many more. Always ask for a list non-deductible expenses from an accountant or tax attorney so you will have a proper itemization of your deductibles prior to filing.