Guest Contributor

Business 101: How to Come Out On Top Of Tax Season

By | Sierra Powell

Tax season is here, and everyone is trying to make the best out of the season. Filing your taxes means you are getting deducted some money by the IRS. The only way to ensure that you do not feel cheated by the systems is by filing your returns well. Here are a few tips on how you can come out on top during tax season.

Double-Check Your Paycheck

There were tax cuts in 2017, and the IRS has taken a while to reflect these on the system. Chances are, you are paying more than you should in terms of tax. The only way to handle this is by looking at your paycheck and ensuring that you are deducting the correct amount. In case you are getting deducted less, you need to let the IRS know before they catch up with you. On the other hand, you can get a refund if they are overtaxing you. It will also help you avoid losing more money in the long run.

Get a Professional To Help You File Your Taxes

Many people lose money when filing taxes because they do not know how to do it. The best thing to do in such a situation is to get a professional to help you file your taxes better. They can also help you see what you have been doing wrong and whether you need to get a refund from the IRS. A CPA or tax professional should be able to do it for you at a fee.

If you cannot afford a CPA or tax professional, there are still other affordable options. There are various sites online that can help you figure out how to do your taxes without a hassle. Doing this ensures you file the right thing to avoid breaking the law or losing money.

Claim the People You Have Been Helping

If you have been helping out with a relative or friend, you can claim them as a dependent. Even though this has some rules to make it legitimate, the deductibles will apply to you if the non-relative has lived with you for over a year. Relatives do not have to be living with you. As long as you can prove that you cater to more than half of their living expense, you are eligible for a tax reduction.

Avoid Getting Defrauded

During tax season, you are more likely to get phone calls from people claiming to be the IRS and try to get your details. It would be best if you remembered that the IRS will never call you unless you have filed for litigation. The IRS only send you emails in case they need to communicate with you. To ensure you are talking to the right people, the IRS has a list of tax preparers. You can look up in case you get a phone call from anyone claiming to be from the IRS.

Don’t Take the Standard Deduction if You Can Itemize

One reason many people make losses when filing taxes is they are itemizing instead of taking standard deductions. You may make a couple of savings per month, but it pays off after a while. You might argue that you save on money and time when you take a standard deduction. Even with this, you might notice you need a refund from the IRS when you itemize your deduction.

Get a Lawyer in Case You Need To File for an Offer in Compromise

When you have a huge tax debt, the IRS might come after you and need you to pay up. If you have accumulated a huge debt, it might be difficult to pay off all of it at once. One of the things you can do is ask for an OIC from the IRS. With this, you will not pay all the debt as long as you can offer a down payment first and clear off the installments in the stipulated time. To help you do this, get a lawyer who has experienced help with offers in compromise. They will guide you on what to do.

Tax season should not cause you anxious nights. All you need to do is get your house in order. Always ensure that you file your taxes on time to avoid any issues.

Show More

Related Articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button