An Essential Guide To Tax Tips For Procrastinators
Do you hate taxes? Are you a procrastinator? Do you always put off your taxes until the last minute? Here are essential tax tips for procrastinators!
Are you a procrastinator? Do you often wait until the last minute to start? Do you wait until something has to be done before taking action? Here is an essential guide to tax tips for procrastinators.
When Does Tax Season Start?
The time varies for tax season each year, but it generally begins mid to late January. At the end of the prior year and the start of the new year, tax documents from employer(s) and accounts should find their way to your inbox and mailbox.
April 15th is the official date for tax day. Aim to get your taxes organized and filed by that date.
What Are My Options For Filing Taxes?
You can file with a certified public accountant (CPA). There is also the option to use a program like Turbo Tax. If you want a middle option between employing a program and a CPA, there are more options for filing online.
A great tax accountant will cost more, but the CPA usually finds ways to save money while following the tax code. The programs will be the least expensive option but lack the sophistication of a tax accountant. The option that combines both is the middle option. The tax accountants who work for large programs, like Turbo Tax, may spend some time looking into ways to help you save more money but will lack the dedication of a CPA.
The option you choose depends on your income bracket, what deductions you may utilize, and how sophisticated you want to be to follow the law while finding tax breaks in the tax code.
6 Benefits Of Filing Taxes On Time
Find Important Financial Documents
Tracking the critical financial documents needed to file taxes can take time. Some institutions may send them to your email. Others may send you a physical copy of the tax document. If you need to catch up on taxes, the documents may be in another state where you previously lived.
Standard financial documents that need to be filed each year to the IRS. The type you have to file will depend on whether you own a business, are an employee, and what kinds of investments you have.
Here is a list of the standard financial documents to track down and organize for filing taxes:
1040 (Individual income tax return)
1040-SR
1099
1099-MISC (Miscellaneous income)
1099-G (Unemployment benefits)
1099-K (Third-party network transactions and records)
1099-INT (Interest income from savings accounts, brokerages, and other financial institutions)
1099-DIV (Dividends and distributions)
1098-T (Tuition statement)
Form 1098 (Mortgage interest rate statement)
Form 1095-A (Health insurance marketplace statement)
W-2 (Wage and tax statement)
W-4 (Withholding certificate for employees)
W-4P (Withholding statement for annuity payments or pension)
Business receipts for any deductions and business expenses
Health Savings Account (HSA) interest rate statement
The type of tax documents you have to file are unique to you. One person may have to find only a couple of tax documents. Someone else must find the correct tax documents for their business and personal taxes.
https://www.fool.com/taxes/the-13-most-common-tax-forms/
Receive Your Tax Refund Faster
You will receive your tax refund faster. E-filing is the quickest option to file taxes. Sending the documents via snail mail can take several weeks to reach the IRS. There is always the possibility that it could get lost in the mail.
The IRS will start to accept e-file tax returns on January 23, 2024.
Start to get organized today. Send everything to your tax accountant. Get your refund faster. Relax.
Additional Time To Pay Any Taxes You May Owe
If you are behind on your taxes, it provides additional time to work to figure out the taxes that you owe for the previous year(s). By filing taxes in January, you can get ahead of the start of the year.
Begin to compile the needed information for your 1040 Form. Getting ahead will allow you to arrange everything for your tax accountant and IRS payment properly.
Avoid Filing A Tax Extension
Filing taxes early can help to avoid having to file a tax extension. Disorganization may be a reason why a person had to file an extension. Another reason could be that they moved states or an unforeseen event, like a pandemic or a complicated tax season. There may be legitimate events that happen in one’s life that require filing an extension.
For the other times when a life-changing event does not occur, an organization can help to file on time.
Prevent Identity Theft From Taxes
Identity theft is a growing problem. Taxes are filled with critical personal information from Social Security Numbers, bank accounts, employers, and other data hackers would love to access.
Be aware of a fraudulent tax return that appears to be in your name. Or tax information that seems like it is from the IRS. But upon closer inspection, it is clear that it is a honeypot meant to steal your identity.
CNBC reports that individuals who have been victims of identity theft have been waiting nearly nineteen months for their tax returns and for the IRS to process their tax returns.
Peace Of Mind
Filing your taxes on time gives you peace of mind. You will not worry about filing late or paying a late tax fee. You will not be stressed if the IRS notices you are behind or have missed taxes.
Relax. Chill. Be at peace.
The busy work and stress that comes with taxes is done.
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Summary
These are some simple ways for procrastinators to get organized this tax season. Start early. Get ahead on your taxes. Enjoy the tranquility of knowing that the difficult work of finding all the required tax documents is finished.
How can you get ahead of taxes this year? How does procrastination prevent you from achieving your goals? Why is it important to file taxes on time? Let us know in the comments below!