Although you may dread filing your taxes, you at least know when they are due — April 18. This allows you plenty of time to plan and get all your financial ducks in a row.
Fortunately, a wealth of assistance is available when filing your taxes, ranging from software to accountants to online resources. However, there are some steps you can and should take to make tax filing less taxing.
Know What To Expect
Knowing what tax forms to expect can make the tax filing less taxing. Around January 31 of each year, you should receive tax forms reporting your income, such as W-2s and 1099-NECs. More complicated tax forms, such as K-1s for partnerships, may be available in March. You should expect to receive additional forms depending on your tax situation.
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Collect All of Your Paperwork
In addition to the tax forms mailed to you, you will need to gather various statements and documents to complete your tax return.
Utilize Tax Software
Before the 1980s, all taxpayers had to mail their returns to the IRS. Electronic filing of tax returns did not become available until 1986 when five tax preparers from three metropolitan areas were chosen for a test program. Almost everyone now files their tax returns electronically. According to the IRS, 90% of all tax returns for 2021 were filed electronically.
Free Tax Return Filing
One disadvantage of using a tax software program is that most of them charge fees that frequently exceed $50. However, the federal government provides a free online e-filing service that requires no payment, and approximately 70% of Americans are eligible to use it to make tax filing less taxing. To qualify for the IRS Free File program, you must have an income of $73,000 or less, which puts it within most Americans’ financial means. This can alleviate one of the most problematic aspects of filing taxes yearly if you qualify.
If Necessary, Hire a professional.
Hiring a tax professional is sometimes the best option, especially if your return is overly complicated. These are just some tips you can do to make your tax filing less taxing.