Keys to getting all you're owed back from the government – Taxes
The key to not leaving money on the table when you do your taxes is toknow what you qualify for in deductions and credits. Be sure to think through everything you did in 2013.The biggest reason people don't get as much back as they could is because they don't know they qualify for a break.Search online, talk to a tax professional, get educated on what you could be overlooking. Then gather all your documents.
We'll help you get started…
Here is a starter list of commonly needed documentation.This is not a complete list, and not all items apply to all filers.
– W2s |
– 1099s |
– Social Security Numbers (of all dependents) |
– Self-Employment records |
– Charitable Contribution statements |
– Business Expense receipts |
– Investment Earnings statements |
– Business Expense records |
– Mortgage Interest statement |
– Business Income records |
– Prior Year's return; including the amount of any refunds |
– Mileage statements |
– Work-related Expense receipts (such as uniform requirements that are not reimbursed) |
– Home-use for Business statements (such as utility bills) |
– Tax Preparation expense receipt from prior year |
– Medical bills and receipts |
Now, get ready”¦
(1) Gather your paperwork. Look at last year's return to jog your memory.
(2) Make an appointment with a tax professional, or purchase and install current tax return software on your computer.
– If you get help with your taxes, allow at least two days between gathering your paperwork and going to your appointment. This gives you to time to think through your items more than once. It will help you remember everything you need to bring with you.
– If you use self-prep software, don't fill it out and send it the same day. Save your return and look at it again the next day with fresh eyes. This reduces the chance of errors or omissions.
– Don't wait to work on your taxes. Even if you think you may owe money. It's better to do it early, and have time to make sure you didn't forget anything – and, if you have to, to save up to send money in.
(3) If you owe money, you can submit the paperwork, and then wait to mail the money on April 15th. Payments are not required to be sent with your return.
One more tip to consider”¦
If you receive a huge refund every year, it may feel like a windfall and be exciting, but it actually harms you financially. Often all a big refund means is that you overpaid the government all year. Then they give youyourmoney back, without paying you any interest. So examine why you get a big refund and consider adjusting your payroll deductions.Always seek personal, professional advicepriorto making any changes.This tidbit of advice is not a “one size fits all”.