Filing Taxes On Time for Beginners: A Simple Guide

While tax season might be over for this year, it may only take a hop, skip, and a jump before the next tax season is upon us. This calls for you to be prepared in order to avoid issues, penalties, and legal repercussions for not filing your taxes on time.

At the surface level, filing your taxes might seem like a challenge designed to stress you out. But when you learn the ropes, it becomes clear that the process is actually not that difficult. If you are vigilant and well-informed, you can speed through the tax filing requirements with remarkable ease.

If this intro catches your interest, you might like the following quick guide on how to file your taxes on time.

Know Your Tax Obligations

Many people contribute to their tax bill payment throughout the year in the form of withholding tax. Considering the ethical considerations in payroll management, withholding tax is deducted from every paycheck and roughly comes down to the estimated tax that you need to pay each year. However, if you are self-employed, you may need to take care of this process by yourself every quarter.

Check If You Need to File Taxes

If your income is below the threshold for tax filing requirements, you can do without filing your tax returns. With that being said, even if you don’t need to file taxes, it’s highly encouraged that you move forward with the process anyway with the help of solutions like hosted tax software. This could help you claim benefits like tax credits and tax refund.

Put Together All Your Documents

Gathering your documents like your proof of income and medical expenses is no mean feat. But it can become easier if you do it throughout the year instead of taking it on all at once. While some businesses and individuals may use analog solutions to store documents, others take the digital route and make use of document management solutions to keep their information safe and accessible.

Check Your Eligibility For Tax Credits

Many people who file taxes are eligible for certain tax credits that lower their tax bill. This includes options like the Child Tax Credit (CTC). You should check your eligibility for these credits so you can check if you can avail them. While many Californians are moving to Texas to avail certain tax benefits, you don’t need to uproot your life to make use of these credits.

Choose Between Standard and Itemized Deductions

Whenever you choose a tax filing status, you can also pick between standard deductions and itemized deductions. While the former helps you deduct a set amount from your total income to lower your taxable income, itemized deductions go over individual fields to achieve the same feat. Depending upon your requirements and use of solutions like an investment app, you can choose between these filing approaches.

Take Necessary Steps to File Your Return

To file your return, you can either use the IRS Free File app or a third-party app. If your employer has been withholding tax from your paycheck to pay the IRS, you may only need to follow simple steps to file your return. With that, if you align investments with your values, you may also need to include details about them to properly settle your yearly tax bill.

Don’t Hesitate to Ask For Help

If you find it overwhelming to file your taxes by yourself, you can reach out to tax accountants who can help you. Some of them may process your tax return for little to no fees, while others might charge a certain amount according to your financial profile. In either case, this can minimize the chances for errors and help you file taxes without major issues.

Remember That Relief is Available

Besides using solutions like a financial app to manage your money and file taxes on time, you can also speak to the IRS to settle large tax bills through plans like an offer in compromise (OIC). This can ensure that you do not run into legal battles and negotiate payment terms in good faith. This is especially helpful if you have had taxes due for a while or cannot pay them with your current assets.

Through this guide, you can file your tax returns on time and remain in good standing with the IRS. If you have any questions, you should remember that professional help is available in the form of accountants in your area.