Monday, August 19, 2013

As soon as the tax filing season appears, a lot of people start contacting various professional agencies to ensure a smooth tax filing process. But, there are individuals who prefer to file the returns on their own, without any expert guidance and there is nothing wrong in that. However there are certain tips that if kept in mind, can help these individuals to file the returns on their own with greater efficiency and perfection.

1) Determine The Complexity Of The Tax Return:
The first and the most important step to follow are to determine the complexity of your return. If you are filing a return with only the standard deductions, then there is no harm in filing it on your own. But, if you need to include complex multiple deductions while filing your taxes, then it is always advisable to take the help of a professional. A tax professional will not only maximize your return, but will also decrease the chances of facing an audit.

2) Understand The Tax Basics Well:
Always make sure that you at least have some basic knowledge about tax filing process and understand the tax code well before filing the taxes on your own. The tax code is complex and can be easily misunderstood. Moreover, the code is altered every year with new amendments and rules, so having incomplete or outdated knowledge can make things worse.

3) Keep the Tax Records Organized:
This is a really crucial step while filing on your own. Keeping the tax records accurate and organized reduce the chances of errors while filing. For e.g. if you claim a deduction, then make sure you have the receipt to support the cause to avoid any consequences.

4) Feel Free To Ask Any Questions:
Even if you haven't hired any professional to help you out with the process of tax filing, you can always feel free to ask any doubt or problem arising in your mind related to tax code, deductions etc. from a number of resources available on the internet like online IRS hotline, forums, online tax help websites and many more. So, rather than filing wrong tax returns, it is advisable to take help of these resources to save a lot of time and resources.

5) Recognize All The Tax Credits And Deductions You Are Eligible For:

Recognizing all your credits and deductions is a really good way to maximize your tax refund. For e.g. families having children in college or daycare are eligible for a number of tax credits. Some of the most common tax deductions that are mostly overlooked by various individuals include job hunting costs, charitable deductions and many more. So, it is reasonable to plan ahead in order to obtain all the deductions that you are entitled for.

Filing the taxes on your own is not a difficult task to accomplish. Having some basic knowledge about the filing process, remaining up to date with the latest amendments in the tax code and recognizing your deduction and credits will definitely ensure the tax filing success.


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