Navigating the tax season doesn’t always come easily. The good news is you can simplify the process with streamlined tax preparation. Let’s explore the essential ways to take on filing returns like an expert below.
Get to Know Tax Preparation Basics
Effective tax preparation makes everything better – from evading costly mistakes to skipping to a timely return. You could also minimize your liability and maximize your refund in this way.
Mastering this filing process comes down to a few basics: meeting due dates, filing the correct documents, reporting income types, and avoiding common errors. These apply to tax preparation for individuals, businesses, and self-employed people.
Save Tax Filing Deadlines
Tax season starts in January with the primary due dates falling on March 15 and April 15 annually. The dates only change when they fall on a weekend or holiday, in which case they will move to the next business day.
Individuals: April 15
This group includes employees, self-employed people, gig workers, independent contractors, and retirees. The extension deadline is October 15.
Quarterlies: April 15, June 15, September 15, and January 15, 2025
Take note of these dates if you are self-employed, a gig worker or an independent contractor opting for quarterly estimated tax payments.
Businesses: March 15 or April 15
Partnerships and S corporations must file their tax returns by March 15, while C corporations’ due date is April 15. The extension deadlines are September 15 and October 15, respectively.
W-2 and 1099 Forms: January 31
This is the deadline for sending certain 1099 forms and for employers to send W-2 forms to employees.
Prep Documents & Declarations
Familiarize yourself with relevant tax forms, such as W-2s, 1040, 1095-A, 1099s and 1098s. You may also need other records, including but not limited to:
- Social Security number (SSN) or individual tax ID number (ITIN)
- Banking account and routing numbers
- Any relevant IRS letters
- Deduction and credit documents
- A declaration and report of all your income types
Avoid Common Pitfalls
Filing errors pop up often but they are typically easy to avoid, especially when filing electronically or with tax assistance. Be sure to skip these when you’re completing your return.
- Premature filing – Runs the risk of not including all the reporting documents, which could lead to mistakes and a processing delay.
- Data input issues – Errors, like misspelled names, inaccurate SSNs or bank account numbers, math mistakes, will cause a delay.
- Not signing forms – Not fully signed forms render a tax return invalid.
- Selecting the wrong filing status – Prolongs processing or may deem the filing invalid.
Practical Tax Preparation Tips
There are a few ways to ensure bump-free tax filing and maximize your benefits. Here’s how:
- Check if you need to file a tax return on the IRS tax filing threshold before you start your tax preparation.
- Use digital document management to keep an organized record. Collect and file relevant receipts, organize income statements and track deductible expenses.
- Reduce tax liability by including relevant deductions and credits, like Child Tax Credit or Earned Income Tax Credit (EITC).
- Stick to deadlines to stay away from penalties.
Alternatively, you can skip the heavy lifting by partnering with one of the top tax preparation services and planning firms. In this way, you’ll ensure full compliance with all the tax laws and regulations.
Make Filing Fault-Free with Tax Planning
Tax planning saves time, reduces stress, and ensures accuracy. Would you like to learn more? Then contact Superstein PA to assist and take a step toward peace of mind.
Disclaimer: This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.