The start of every new year is a time to reflect on the decisions taken in the earlier year and to make positive changes in your life and work.
This includes changing the way you pay taxes. Perhaps you have been losing a lot of money on taxes because you’ve been making some basic mistakes. In this article, you will learn how to pay tax the right way. Read on for top 6 tax saving tips 2017…
Tip #1: File your taxes yourself
According to the IRS, 80 percent of taxpayers in the USA prepare their own taxes using tax software such as Quicken, Drake Tax Software, ATX Tax Software, Lacerte Tax Software or ProSeries Tax Software. The others pay professional accountants or tax preparers to file their taxes. By filing your tax returns yourself, you can potentially save hundreds of dollars.
Tip#2: Sign up for a hosted tax software on the cloud.
Your most important tip is to sign up for a hosted tax software such as Drake Tax Hosting, Lacerte Tax Software Hosting, ATX Tax Software Hosting or ProSeries Tax software Hosting. This way, you can e-file your tax returns no matter where you are, and at a time of your choice. Also, you can pay as you go, which means you only have to subscribe to the hosting during the tax season or when you want to do your taxes. With cloud accounting, you don’t “buy” the software, you just rent it, so to speak, for as long as you need it. Contact us at Cloudwalk Hosting and Cloud Services for more information on this.
Tip #3: File your taxes as early as possible.
You should make it a point to file your taxes as soon as possible. Get your documents together, arrange all the paperwork, and go online on the hosted tax software of your choice to file your taxes. The earlier you file, the better your chances of getting a tax refund in quick time.
Tip #4: E-file your tax returns with a direct deposit
You can now e-file your tax returns with direct deposit online. This is the fastest way to get a refund from the federal government. The IRS says that taxpayers who e-file with direct deposit get their refund within 3 weeks or so.
Tip #5: Remember all payments and expenses of 2016
It’s so easy to miss out on the little expenses of the past year, but eventually they all add up and the final outcome is something significant. Your little expenses related to business or job search can add up to major deductions later when you file your tax returns online. So, do you have any medical expenses? Did you buy a new laptop? Did you make a donation to a charity? It’s time to file everything and get major deductions on your taxes.
Tip #6: Make sure your paperwork is in order
Do you have everything you need? Gather together in one place, the paperwork, forms and receipts related to your tax-deductible expenses. Organize everything into a folder so that you miss nothing. Make sure you’ve got all the relevant forms with you such as the W-2s and 1099s.