If you live in the U.S. then yes, it’s that time of the year. Tax time. The dreaded period between January 31 (the deadline that employers and business have to mail consumer any pertinent tax forms that they will need to file taxes for the previous year) and April 15, the last day to file your tax return with the I.R.S.
It’s onerous, it’s annoying, but it has to be done. So let’s talk about a few things to at least make the process easier.
By today you should have all the forms that you will need to file your taxes. If you are missing something, then you should immediately contact the company that should have sent you the form to request a reprint. This is very important.
And now to some tips to make this more bearable... hey, I’m trying!
Get all your paperwork together
Get a big manila envelope, write “2014 TAXES” on it and stuff everything you think you might need in there. W2s, 1099s, receipts, anything that you need to prove a deduction from your income.Fill out your tax return
If there is one piece of advice that I think will be most useful to you about filing your taxes it’s this. Fill out your tax forms (known as a tax return) now, even if you don’t file it with the government until April 15.
The reason for this is simple: if you are owed money back, yay! You can file it right away and get that nice little refund right away. And if you owe, at least you will know how much the damage is long before it’s due and you can make provisions to pay it. Nobody likes to do it, but isn’t it better to be prepared with time?
Use eFile if you can
The vast majority of taxpayers nowadays use electronic filing. It helps in that you don’t need to know anything about taxes to use these types of software. They tell you what form to take, what number on the form to tell them, and they ask you simple yes or no questions to make sure that they gather all your information. In the end, if you made under $60,000 for the year, the filing is free of charge. If you made more than that, most systems will offer you the option to use their services for a fixed fee. If you know nothing of taxes, it’s a good way to go.If you’re a taxpayer whose employer pays your taxes every month, visit this page.
If you’re an independent contractor, work by CPR (contract per result) or run your own consultancy, or have your own small business, visit this page.
Other free assistance
Other filing options
If you aren’t very computer-savvy, or if you feel that you are better served by using the in-person services of a professional, there are plenty of reputable agencies that will help you file your tax forms, or you can engage the services of a CPA. Most tax agencies have a walk-in service but if you want the services of a tax professional CPA, you will likely have to book an appointment as they usually are very small businesses.If you are due money back, get ACH!
ACH or automated clearinghouse is an electronic direct deposit of your refund. |
| At the end of your tax return you will find this box, where you can enter your account information to receive a direct deposit of your refund. |
If you owe a lot, revisit your W-4
If you complete your return and see that you owe a lot of money, I suggest that you don’t let this happen next year. If you are employed, speak with your payroll department and consider lowering your deductions on your W-4. The fewer deductions (called allowances on the form) you claim, the more money is taken off your paycheck. When I was single I got tired of paying every year so I ended up claiming 0 exceptions (yeah you, can do that, it’s legal), and I never had to pay after that.Checking your deductions on your W-4 is something you should do at other times in life, such as: getting married, or divorced; if you’re married and your spouse changes jobs; if you have a child or adopt one, or one turns 19 years of age ( but if he/she still studies and you still maintain them, that age for dependency can still be claimed until they’re 24); if you get a second job, or have been unemployed part of the year.
Because every bit helps: get a Tax Club account
If you’re an independent contractor, consultant, or a CPR, then you know that need to pay your own taxes, quarterly or yearly. Either way, the Credit Union offers members a Tax Club account to help making savings for tax time a little more bearable.You set up a payroll deduction or automatic transfer to set aside tax money in the tax club account each month, it gives you a higher interest rate than a regular share savings account, and you are allowed quarterly withdrawals to pay taxes. This account helps you stay organized, and rewards your money management efforts.
And if you want to learn, there’s always Number 17
Publication 17 from the IRS is titled Your Federal Income Tax and it’s the complete guide for taxpayers. It contains information on every single point that any person would ever need to file their taxes. Personally I find it quite useful, and even if sometimes I can get a little confused, whenever I have googled something I didn’t understand on this booklet, I always got a good explanation. I am not saying everyone should learn about tax subjects, but the information is all there if you want to give it a go.Comments? Use the comment section below.
Questions? You can also use the comments section or email me.
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