Get your taxes done early this year! No more waiting until the deadline to get your filings in! Enjoy this quick how-to for your completing your income taxes courtesy of Raccoon Valley Bank.
File your taxes IF necessary.
After receiving your W-2’s from employers, determine if you need to file taxes, or if you are able to claim exemption. If you have had money withheld from your paycheck, you want to file taxes. As a general rule, if you’re single making over $9,750, or married and filing jointly making over $19,000, then yes you need to file your income taxes. There are however additional financial limits for head of household, widowers, and tax payers over 65. Once you’ve determined that you need to file the next step is choosing your manner of filing.
Choose the best medium of filing for you.
With so many options in filing your taxes it’s hard to decide which option is best for you and your family. If your household income is less than $58,000 the IRS provides free online filing software that can be used to file relatively simple returns. If you prefer to do the filing yourself and are well versed on potential deductions and other regulations, you can print out the tax forms mail your taxes straight to the IRS. If you’d like some added assurance in your filings using a tax software or hiring a local tax consultant can be beneficial when you have a more complex tax filing, or want further education in the process tax filing.
Utilize the capabilities of deductions.
Filing income taxes can at times feel like a run-around, however if done properly the outcome can benefit you greatly. Deductibles are an opportunity that many citizens take advantage of, allowing you to deduct various expenses from your taxable income, potentially bringing you to a lower tax bracket. Below are several simple ways you can utilize tax deductions.
- Charitable donation deduction – keep receipts for any donation to a certified non-profit, even baked good donations may be deducted if the receipts are kept from the purchase of ingredients.
- Relocation deduction – after moving 50 or miles away for a new career you are able to deduct the cost of moving expenses, storage, and travel expenses if you have worked there for 39 weeks or more. If you have not yet worked 39 weeks, but you will accomplish that number in the coming year, you may still file your deduction.
- Mileage deduction – maintaining a rigorous travel log, may seem tedious, but it will pay off in the long run. If you’re driving for volunteer work, job-hunting, or doctor’s appointments you can deduct the mileage from your taxable income so long as you have your travel log and relative receipts.
Using these tips you can make tax filing a breeze, but don’t wait until April! Jump your income taxes today to ensure a quick return on any potential refunds!