Helpful Tax Tips For Federal And State Tax Returns
Each year there are millions of Americans who prepare their own
federal and state tax returns and even more individuals have
their taxes professionally prepared. Whatever choice a taxpayer
makes there are a number of important tax tips that everyone
should know.
A W-2 or 1099MISC is needed to accurately prepare a federal or
state income tax return. There is always a chance that a
taxpayer may misplace these forms or for one reason or another
the forms may not have reached them. For federal tax returns and
most state tax returns a W-2 or a 1099MISC is required.
Individuals who do not attach these items are likely to prevent
their tax returns from being processed or cause a refund delay.
The Internal Revenue Service (IRS) states that all taxpayer
should receive their W-2 or 1099MISC forms before February 15th.
Individuals who did not receive these items are encourage to
contact their employer to determine why the forms have not
arrived. Taxpayers who misplaced their W-2 or 1099MISC forms are
encouraged to contact their employer right away to receive a
copy. Taxpayers must do so because even if a wage or income form
is missing a tax return is due on the traditional April 15th
deadline or else late fees and penalties may be assessed.
Another one of the popular tax tips that taxpayers should know
about is tax deductions. It is estimated that each year the
American public loses millions of dollars from tax deductions
that they were entitled to, but failed to claim. A professional
tax preparer and a tax software program may prompt an individual
to claim tax deductions that they qualify for. Individuals
preparing their own paper taxes are more likely to miss tax
deductions that they may claim. To prevent this from happening
taxpayers are encouraged to research the most frequently
overlooked tax deductions to determine which deductions they may
qualify for.
Another one of the most common tax tips that taxpayers need to
be aware of is what to do if they can't pay the amount of taxes
owed on federal or state tax returns. The biggest mistake that
taxpayers make when realizing that they cannot pay the amount
due on their taxes is to not file a tax return. Some people
think that not filing a return will prevent a refund from being
owed on time when in reality it can make the situation a lot
worse. Taxpayers can file an extension deadline; however, the
estimated amount of taxes owed is still due on the traditional
tax deadline. The Internal Revenue Service (IRS) will impose a
number of late fees and penalties on tax payments that were not
received in time. Just ignoring the Internal Revenue Service
(IRS) may increase the number of or the amount of penalties. http://www.ta
xhelpdirectory.com/irs/irstaxlaw/
One of the most important tax tips that a taxpayer needs to keep
in mind is that the Internal Revenue Service (IRS) and many
state governments change or update their tax laws each year. For
this is reason taxpayers are encouraged to check out the website
of the Internal Revenue Service (IRS) or the website of their
state tax department to determine if any of the tax law changes
need to be applied to their federal or state tax returns.
These helpful tax tips are just a few of the many tax tips that
can help tax preparation flow more smoothly. The above mentioned
tax tips will also help to reduce the amount of money that an
individual owes on federal or state taxes or even potentially
increase the amount of their refund. Why pay late fees or lose
money on tax deductions that you deserve? Let these and other
helpful tax tips assist you this tax season.