It’s coming! Tax season is upon us and it can be a big source of stress for a lot of people. There are a few tax tips that everyone should know to help you get through this tax season without pulling your hair out and spending hundreds of dollars filing your taxes.
I have teamed up with United Way and The Motherhood to share some tips that should help everyone this tax season, even if you are self-employed like myself.
I remember the first time I had to file my taxes after becoming self-employed. It was so stressful and I was afraid that I was going to miss out on some important deductions. Not to mention all of the paperwork that I had to get together.
Needless to say, I have learned from my mistakes and I wanted to share things that I took away from my personal experience so that you can have a much easier time than I did.
Before you even start deciding how to file your taxes, by doing it yourself or hiring someone, you need to make sure you have everything together and organized.
I like to keep a folder in my filing cabinet just for tax documents. Whenever I make a charitable donation or make a business purchase throughout the year, I put the receipts in that folder.
All of your tax documents will start coming in the month of January, so all of those go in the folder as soon as they arrive. This includes health insurance forms, 1099s, investing and retirement forms, W2 forms, etc.
Keep everything together in one secure place so that when it comes time to sit down and do your taxes, you won’t forget any deductions and you won’t be searching the entire house for a missing form.
This cuts down on so much stress!
I personally like to start working on my taxes in February. I can work on it a little bit at a time instead of having to block out hours at once just to get it finished.
By starting early, you won’t feel rushed, you can take your time, and double check that you didn’t miss any deductions that you are owed.
This makes doing your taxes a much more pleasurable experience.
Take your Time
By taking your time doing your taxes, you are less likely to make a mistake that could cost you money. Go slow, just do a section or two at a time so it doesn’t get overwhelming.
This also allows you to go over your taxes several times to make sure everything is accurate or to get help from a professional if you need it.
File your Taxes for Free
I know that we have all heard of the different tax software that claims they will file your taxes for free. What you may not realize is that they will only file your federal taxes for free but you have to pay to file your state taxes or you have to pay if you need to use specialized forms.
It can be frustrating to learn that after you have spent so much time getting your taxes completed and you are ready to file! It happened to me!
If your household earned less than $66,000 in 2017 you can file both your federal and state returns for free using MyFreeTaxes.com. It is completely free whether you file in multiple states, work freelance, have a side gig, or earn
Since the average cost for filing taxes can be around $200, this can save you a considerable amount of money! It cost me $170 to file mine last year.
United Way has teamed up with H&R Block to power this software so you know that it will be 100% accurate and secure. They will make sure that you get the maximum refund you are owed.
If you have any questions while doing your taxes, they have free customer support from IRS-certified specialists. You can get in touch by calling, emailing, or using a chat box to talk with a real person.
I love that they even offer specialized forms for people who are freelancers and/or self-employed.
Over 70% of US tax payers are eligible to file their taxes for free using MyFreeTaxes.com. It helps ensure that you get every dollar that you deserve while saving you hundreds on your actual tax filing.
This is the first year that I have heard of this software and you better believe that I will be using it to file my taxes this tax season!
What are some other tax tips that you use to lower stress and save money?