Tips and tricks to filing the “old fashioned” way
We are, by all accounts, becoming an almost paperless society. Email is replacing much written correspondence; bills are often sent and paid electronically; even our taxes are filed online. Even so, we are still inundated with invoices, receipts, and statements which all need to be organized for filing those taxes. Whether you choose to file electronically or with the old pen and paper method, there are some tips to making the process go more smoothly.
Keep a Tax File
A tax file doesn’t need to be big and fancy. It doesn’t even need to be a traditional file cabinet. An accordion-style file folder performs nicely for keeping receipts and statements organized for tax time. Mark the tabs with different categories you need to track, like medical/dental expenses, donations and contributions, local and property taxes, etc. Having everything you need in one place will significantly reduce your stress level and the time it takes to complete your tax return.
Keep an Eye on the Clock
We all know the deadline for filing federal taxes is April 15th each year. But do you know when you should have all your W-2s and 1099s? Companies are required to mail out these essential documents to you no later than January 31st of each year. So, if the first week of February has come and gone and you haven’t received a document you were expecting, get on the phone and find out where it is. Just because they didn’t get it to you doesn’t mean the company isn’t reporting that income to the IRS. If they report it and you don’t, you very well may end up getting audited.
Choose the Easiest Form
When filing your federal return you have three forms to choose from: 1040-EZ, 1040A and 1040. Pick the form that fits your type of income best. It will be easier for you to fill out and quicker for the IRS to process.
If you have income from wages or interest only that’s less than $100,000, no dependents, don’t own a home and didn’t attend school you can use form 1040-EZ. You may not itemize deductions on the EZ form, but can take the Earned Income Credit and the Making Work Pay Credit.
The 1040A may be a good choice for you if your income and deductions is a little more complicated. The 1040A is less complicated than the 1040 and allows you to take more deductions than the 1040EZ. The 1040A also covers more types of incomes and is only two pages long. You still may only take the standard deduction, though, so if you plan to itemize you must file form 1040.
The easiest way to file your taxes, even a paper return, is to use an online provider. The site will ask you pertinent questions, fill in the appropriate forms for you and choose the correct type of 1040 to file. You can then choose if you want to file electronically or print, sign and mail the old fashioned way. Just remember, the more organized you are before you start your tax return the quicker you’ll be finished.