Tax Day is Around the Corner. Are you Ready?
April 15th is Tax Day – and it’s right around the corner! Follow these pointers to help get you started on the filing process today:
- Decide how you want to file. Many people choose the DIY approach to taxes and file using an online program like TurboTax or H&R Block. That’s a great option if you anticipate a straightforward tax year.
If you think your taxes might be more complex, try hiring a tax preparer. Reasons you may want to hire a pro might include:- You’re self-employed or own your own business
- You’re a new homeowner
- You’ve had a major life change in the last year like marriage, divorce or having a child
- Gather important financial documents. Before you can start your taxes, you’ll need to dig around for documents like:
- Last year’s taxes
- Income records including any W2s, 1099s, investment income, rental property income and expenses, alimony or other miscellaneous income you may have received in the past year
- Social Security or tax ID numbers for you, your spouse and your dependents
- Review potential credits and deductions. Tax credits and deductions can help lower the amount of tax you may owe or increase your potential refund. It’s important to start thinking about credits and deductions before you file because some have specific requirements in order to claim them – like filling out forms or submitting documentation.
Examples of credits include, but are not limited to:- Child Tax Credit
- Retirement Savings Contributions Credit (or the Savers Tax Credit)
- American Opportunity and Lifetime Earning Credits
- Retirement account contributions
- Educational expenses
- Medical bills
- Charitable donations
You can view all available credits and deductions on www.irs.gov/credits-and-deductions.
Everyone’s taxes are different – one approach doesn’t fit all situations. Please make sure to consult a tax expert if you have questions about your own taxes. The contents of this article are to educate, not provide specific tax preparation advice.
