Filing taxes can feel like a maze, especially when you're trying to figure out what documents you need or whether to take a deduction. But it doesn't have to be complicated if you're prepared. Let’s break it down so you feel ready to tackle tax season this year.
1. Gather Your Documents
The first step is making sure you have all the important paperwork. W-2s, 1099s, receipts for deductible expenses, investment information—these are all crucial. If you're not sure what you need, make a checklist. Trust me, gathering everything beforehand will save you stress later.
2. Know Your Deadlines
The IRS is strict about deadlines. For most people, tax day is mid-April. If you’re self-employed, don’t forget about quarterly estimated payments too. Missing these deadlines can lead to late fees and penalties, so mark your calendar!
3. Standard Deduction vs. Itemized Deductions
This is a big one. The standard deduction has increased over the years, which might mean itemizing (i.e., adding up all your deductible expenses) isn’t worth the trouble for some. For others, especially if you’ve had big medical expenses or charitable donations, itemizing can still save you money. If you’re unsure, it’s always best to consult with a tax preparer.
4. Don't Forget About Credits
Tax credits are even better than deductions—they reduce your actual tax bill, not just your taxable income. The Child Tax Credit and Earned Income Tax Credit (EITC) are two examples that many families benefit from. Make sure you're not missing out!
At RLS, we take the confusion out of tax prep. If this sounds like too much to handle on your own, we’re here to help. We’ll guide you through the process so nothing gets missed.
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