Five Simple tax tips; important suggestion for avoiding frequent filing issues plus simple tips for stress-free tax research and insider insight for saving money and time when dealing with IRS.
1. Be Careful and Thorough- Evade common issues like mathematical errors, illegible hand writing, missing signature and transposition of numbers. These small oversights may end up costing you money and time if you’re slapped with penalties.
2. Get organized- Allow adequate time to get your "things" in order. For instance, appropriately categorizing your expenses now will save you a plenty of time later. At the tax time, you’ll be pleased that you grouped your expenses by category and not by name or month of vendor payee.
3. Be Flexible- In other words, constantly hasten deductions in the year you’re doing taxes for and always put off income, if you can, into the next year, thus lowering your present year's tax bite. If you fall into the Alternative Minimum Tax, you might want an advisor to help you.
4. Know When To Ask for Help- Tools like TaxCut and TurboTax are best, but folks with anything more than a straight W-2 must be aware of the restrictions of these software programs.
5. Don't be Penny Wise and Dollar Foolish- Hiring a specialist EA or CPA to arrange your return is a small yearly investment that may pay off big. Do not do your taxes yourself except you’re a straight W-2 wage earner that takes the Standard Deductions.