How Much Money Do I Need To Make File Taxes

10 Tax Filing Tips to Save You Time and Money

Face it: Tax Day is no one's favorite time of year, but it's a necessary evil if you want to be a productive member of society. Besides all the time you spend going through receipts and paperwork, you could end up with a tax bill instead of a refund, resulting in a major disappointment. Fortunately, a few helpful tax filing tips can make the process easy and save you some time and money.

Organize Documents

Before you file your taxes, gather all your important documents, like W-2s, receipts, 1099s, proof of investment income and anything else that could provide a deduction and impact how much you owe. As documents arrive in the mail — usually during the month of January — keep them in one central location so you can easily find them all when it's time to do your taxes.

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Consider an Extension

Everyone knows April 15 is when taxes are due, but you may not realize you can file a six-month extension if you aren't quite ready by this date. It beats rushing through your taxes and making mistakes. If you owe money, you still accrue penalties and interest on the money owed until you file and pay, so keep that in mind.

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E-File

Skip filling out the paper version of the official IRS forms by e-filing your taxes. Many trusted companies offer free federal filing, and these programs also help you check for errors and maximize your deductions. If you make less than a certain amount, the IRS even offers free e-filing software. See the IRS official site for more details.

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Opt for Direct Deposit

If you're one of the lucky ones receiving a refund, sign up for direct deposit. It's free, and all you need to do is provide the IRS with your bank routing and account numbers. You get your refund much quicker than you would if you opted to receive a check in the mail, and there is less room for error.

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Double Check Everything

It may seem time consuming, but double checking your tax forms for errors is always essential before submitting them. Errors on your return could cause costly delays if they aren't corrected in advance. Consider using an e-file program that alerts you to potential errors.

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Lower Your Bill Before the Deadline

If you know you're going to owe some money, take some steps to lower your tax bill. As long as you complete these steps by the tax deadline day, you can contribute to an IRA, 401(k) or health savings account to accomplish this.

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Don't Panic if You Lost Something

Despite your best efforts to stay organized, it's easy to lose a tax form when you receive it in January but don't use it until April. It's also possible for forms to get lost in the mail or never get mailed at all. If the worst happens, you can often go online to get the info from your bank, your investment firm or your employer. Alternatively, you can use form 4852 to estimate your wages and avoid paying costly penalties.

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Consider a CPA

Most people balk at the idea of hiring an accountant to do their taxes, mostly because of the pretty hefty fees. However, if your taxes are complicated — maybe you own a business, you purchased a home or you have many deductions — that fee could lead to a bigger refund or decrease the amount you have to pay.

Pay What You Owe ASAP

Unfortunately, a refund isn't in the cards for everyone. If you owe the IRS, pay them as soon as possible, even if you file an extension. The longer you let it go, the more penalties and interest add up to an even heftier tax bill. You can also consider setting up a payment plan if you can't afford to pay it all right away.

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Learn About Earned Income Tax Credit

People and families who earn what the IRS considers to be a "low or moderate income" may qualify for a free earned income tax credit. Approximately 20 percent of people who qualify don't claim it, and that could leave a lot of money on the table if you're one of them. Find out what it takes to qualify by visiting the IRS website.

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How Much Money Do I Need To Make File Taxes

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