When tax season comes around, the majority of American’s must file and pay federal and state taxes with the IRS and a state tax collection agency. Although millions of people and businesses file taxes each year, this process can be confusing and challenging to navigate without proper background knowledge or preparation.
Filing Tax Returns: An Overview
As defined by investopedia, a tax return is “a form or forms filed with a tax authority that reports income, expenses, and other pertinent tax information.” In short, income tax filing is the process that ensures that individuals are paying sufficient taxes to society, preventing them from overpaying or underpaying.
3 Easy Tips for Seamless Income Tax Filing
To make this process a little more seamless, here are three tips for income tax filing Mesa residents should be aware of:
#1: Claim Any Deductions Possible
Deductions are defined as the expenses that lower a business or individual’s taxable income. In the end, the more deductions someone claims, the lower the amount that’ll need to pay in taxes. In order to get the best return possible, make sure to research the many types of deductions that are out there. This could include:
- Medical expenses
- Child and dependent care
- Charitable donations
- Student loans and educational expenses
- Much more!
#2: Always Keep All Legal Documentation Organized
There is a lot of recordkeeping that goes into the income tax filing process, so it is vital to keep a solid track of important documents throughout the year. This will come into handy when the time comes to submit to the tax collectors.
Some of the essential documentation to have readily available includes:
- Personal Information: Your social security number, tax ID number, and relevant bank routing information should be ready to go.
- Dependents Information: Individuals that have claimed dependents, such as children, should obtain their personal information as well.
- Income Sources: Whether you’re unemployed, self-employed, or traditionally employed, it is crucial to have the documents on hand that show what money was earned for the year. This could be a W-2 form, 1099 form, or 1099-G form, depending on your unique status.
- Deductible Information: Make sure to keep all relevant receipts and statements that could apply to a future deduction!
#3: Work With a Professional Accountant
If the process still feels a little overwhelming to embark on alone, working with a professional accountant is a great investment! This is because they possess the training and experience to optimize tax returns and give individuals the best deal possible. They are with clients every step of the way in answering confusing questions, uncovering deductions clients didn’t know they were eligible for, and overall make the process less time consuming for all parties involved.
M&M Accounting Makes Tax Season Manageable
Looking for help with income tax filing? Mesa residents turn to the accounting professionals at M&M Accounting. We take the stress out of income tax filing for businesses and individuals alike.