Taxes. They’re unavoidable and sometimes they can seem downright unfair. But why is that? Do you believe you’re paying too much? Have you been penalized for a mistake in the past? Not only are these two factors to be concerned about but even the possibility can make it easy to despair when doing our taxes. With the right preparation, however, you have little to fear. Get your affairs in order and this year’s taxes should be a much more painless affair.
Being smart about property tax
A lot of people think about ways to cut down on their income tax. But what about your property? Did you know there are ways to halt the rise of your property tax and even to lower it? An assessor can spot factors in your home that might make you eligible for relief. Primarily, you can make sure you’re not paying more than your neighbours.
The tax dates have changed this year, so take notice. Besides other changes involving taxes on liquid gases and veteran taxes, this is one of the changes to the system rolling in this year. It’s not too difficult to find out the new dates. Just make sure that when you ask “when are income taxes due” you get the right date for you state.
Avoiding underpayment penalties
When you’re filling in your taxes, it’s not difficult to make a bad estimation and end paying less than you should. In return, however, you’ll get an underpayment penalty. These can often charge you more than what you owe to make up the difference. Avoid underpayment penalties by filling in Form 1040ES from the IRS. It will give you an understanding of how much tax exactly you owe.
Making the right deductions
Finding the deductibles has become an art in filing our taxes. But there are a lot of deductibles that you might have already missed. Do your research on some of the more overlooked tax deductions. Out-of-pocket charitable deductions and baggage fee deductions are just a couple of the many you might not know about.
Avoid tax scams
Tax scams are a very real thing with tax season approaching. Most of them are hoaxes used to gain money from the average person doing taxes. There are others involving elaborate schemes to defraud the government. Getting caught in a tax scam can lose you a lot of money. Worse, it can land you in hot water legally. Learn how to avoid tax scams so you don’t end up paying for it when it’s too late.
Taxes can be a difficult thing to get in order, we all know it. For some who find it more difficult than most, however, help is on hand. Depending on your eligibility, you can get free tax return preparation. Not everyone will qualify for this free assistance, of course. Still, there’s no harm in checking to see if you qualify for free help. Primarily, they’re for those with disabilities or limited English speaking skills, but not exclusively.