Know how to survive tax season 2018 by knowing relevant information plus some tips and reminders. People everywhere are scrambling to find the forms and documentation they need. It is important to understand the process to avoid penalties from the IRS. Start with some basic information you need to know for the tax season.
Know How to Survive Tax Season 2018 with These Tips
In this article:
- What Do You Need to Get Started?
- What Do I Do If I Need to File Late?
- What Should I Do If I Cannot Afford Payment?
- What Do I Do If I Have Deductions?
- What Else Do I Need to Know About Tax Season 2018?
- Where Else Can I Go to Get Tax Help?
What Do You Need to Get Started?
To begin knowing how to survive tax season 2018, you must know all the important tax dates. Remember that the deadline for filing is on April 17 this year. Mark April 17, June 15, September 17, and January 15 for the quarterly tax dates.
According to the IRS, around 20 percent of people wait until a week before the deadline to begin. This places them at risk for unintended delays. These delays can easily cause you to file late, resulting in penalties and fines.
During tax season 2018, it’s important to gather important papers and to know which forms to use. Find all the papers that declare your income, such as the W2 and/or 1099 forms. You will also need your forms to determine the amount of taxes you owe. Typically, people will fill out form 1040. You may possibly use form 1040a or 1040ez if your taxes are simple with few deductions. These forms will help you determine your income tax.
Some people will fill out their tax forms themselves by hand. Others will do it using a tax software. The third main option will be to hire an accountant to file them for you. Consider the complexity of your taxes and see which option will work best for you.
What Do I Do If I Need to File Late?
If you need to file your taxes late, you want to ask for an extension as quickly as possible. The extension will give you extra time to get everything to the IRS.
It is important to note that if you owe taxes and do not pay by the deadline, you can be charged interest. On rare occasions, the IRS will waive this penalty. This is usually only in response to catastrophic events. If you think you might qualify for this waiver, you must ask the IRS.
What Should I Do If I Cannot Afford Payment?
Sometimes, people realize they cannot pay all of their taxes. They might file the paperwork on time, but then they do not have the funds to cover the cost.
If you can, pay as much as you can as soon as possible. The IRS will impose interest on the amount of money that has not been paid. If you can decrease the amount of tax you owe, you will also be able to decrease the amount subject to interest.
If making payments can become a problem for you, you can contact the IRS to set up a payment plan. This will help you budget. It will also let the IRS know that you understand you owe money and are making an effort to repay the debt.
What Do I Do If I Have Deductions?
The IRS offers a variety of deductions people can take advantage of to reduce their tax burden. You must take the time to see which ones apply to you. If you work for yourself, for example, you may be able to get a deduction for a home business. If you have dependent children or a mortgage, you may also be able to get a deduction for these categories.
When you find a deduction or tax credit you qualify for, you will want to read the full eligibility requirements the IRS mandates. It will ensure you definitely qualify to receive the deduction.
If you do qualify for a lot of deductions, you do not want to select one of the shorter forms for filing. You want to use the full 1040. This will help you make sure you do not miss any potential deductions.
What Else Do I Need to Know About Tax Season 2018?
In learning how to survive tax season 2018, here are some things to remember:
- File using the correct status. The correct status options for single taxpayers, those who are married but are filing jointly as well as those filing separately must be indicated. Heads of household and qualifying widows(ers) with a dependent child must also be noted. Analyze every status and choose the one with the best tax rate if you qualify for multiple statuses. This will depend on your tax bracket.
- Check all of your math. If you fill out your taxes by hand, verify all of your calculations. You do not want to find out later that you owe more than you realized. If you do your taxes through a software, you have to verify each of your entries. Simple typos can result in vastly different outcomes on your taxes.
- Make sure everything is signed and dated. It can be easy for people to miss places for signatures or dates. This rings particularly true for people trying to do their taxes quickly. Missed signatures, however, can result in your taxes not counting as being filed.
- Verify your direct deposit routing numbers. If you want the IRS to deposit your tax return in your account directly, make sure your number has been recorded correctly.
- Note any loan forgiveness you received. Certain forms of student loan forgiveness are taxable.
Where Else Can I Go to Get Tax Help?
If you need more information about successfully filling out your taxes, you can contact taxreliefcenter.org. We have the insight and experience you need to fill out your taxes confidently.
It’s important to know your rights as a tax paying citizen. Watch the video below to know what to expect for this year’s tax season:
The tax season can be stressful. Understanding what you need to do to fill out your taxes correctly can relieve a lot of the burden. If you know what you’re doing, then you won’t have to be burdened with tax season this year.
Review all the information on how to survive tax season 2018 and don’t forget to reach out if you have more questions.