Tax day is approaching! April 15 is less than a week away and your have yet to have filed your taxes. It is time to get started. Use this easy five-step plan to help you do your taxes!
- Step one – Get your paperwork together: The first step is prepping. Gather all the documents you need, including your W-2 from each employer you have worked with the past year, or a 1099-MISC for any freelance work you have completed. Be sure you also have student loans interest paid, bank interest received, mortgaged investment interest, charitable contributions, and/or documents of business expenses. Keep in mind that even if you do not have all the forms, you should report all of your income, including tips, and freelance work.
- Step two – Decide how you would like to file: You need to really determine whether you should file with a professional or by using online software. If your filing is simple and to the point (one W-2, single with no dependents, and you do not own a house), you can file online. If you have multiple paperwork, or not strong using computers, visit a professional for assistance.
- Step three – Double check the work: Whether you are doing it on your own or with a professional, always double-check your work before submitting. Do not assume your accountant or the system you are using make zero mistakes.
- Step four – Settled up with the IRS:Remember that you have until April 15th to pay as well. Do not NOT file if you do not currently have the money you may owe. If you owe more money than you have already set aside, you can set-up a monthly payment plan with the IRS.
- Step five –Plan ahead for next year: You should consider adjusting your W-4. Make any changes that will benefit you next year. Any life changes, you should take any prep for the next year.