15 Tax Filing Tips You Need to Know

The tax deadline will be here before we know it, so now's the time to focus on getting your return in order. Here are some helpful tips to get through the process with ease.

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The more organized you are, the less stressed you'll be when filing taxes. Gather all of your documents, receipts, old tax returns, and anything else you might need to complete your 2021 return. Having everything in the same place will make things go more smoothly.

By now, you should have all of the tax documents you need to file your 2021 return. But that may not be the case. It's possible that you're missing a 1099 form from your bank, for example, so go through those documents now and follow up with any institution that's yet to provide the information you need.

The tax deadline may be about a month away, but that doesn't mean you should leave your taxes until the last minute. You never know when you might hit a snag, so give yourself as much time as possible to get the job done.

Math errors on your tax return could delay your refund. Filing electronically will reduce the chances of that happening. Plus, the IRS processes refunds for electronically filed taxes faster than it does for paper returns, so it pays to use software to get your taxes done.

If your tax situation changed in 2021, then it may be time to consider hiring a professional for help with your return. This may apply if you started a business or went from being a salaried employee to a freelance one.

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The IRS' Volunteer Income Tax Assistance (VITA) program offers free help to qualifying tax filers. You'll generally be eligible for no-cost assistance if you earn $58,000 or less and have limited English-speaking ability.

Just because you claimed certain tax credits and deductions on your previous return doesn't automatically mean you'll be eligible for them on your 2021 taxes. But it pays to go through that list and use it as a baseline.

ALSO READ: 3 Tax Credits That Got a Boost in 2021

If you have a lot of expenses to deduct, then it could pay to itemize on your tax return. But don't assume that makes sense off the bat. Instead, run the numbers so you ultimately get the most tax savings.

If you're going to claim deductions on your taxes, make sure you have a record of them in case the IRS decides to dig around for further verification. This is especially important if you're claiming deductions related to your business or freelance income.

You might assume that once your tax return is filed, you can shred all of your documents and be done with them. But actually, the IRS gets a three-year window to audit tax returns, so you'll want to keep your documents around for at least that long. If you don't want them taking up space in your office, scan and store them electronically.

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It may be that you earned an $80,000 salary last year but also took in $800 of freelance work. That $800 is income you must report. If the IRS finds out about it, you could land in hot water if you fail to include it on your tax return.

ALSO READ: This Silly Side Hustle Mistake Could Cost You Big Time

If you're not confident you'll have your tax return done by April 18, you can request an extension and buy yourself an extra six months to complete it. If you owe the IRS money and are late with a tax return, you could face costly penalties, so it's important to get an extension if you won't be done on time.

A tax extension gives you more time to file your taxes, but it doesn't give you more time to pay your tax bill. If you owe the IRS money, try to estimate your total debt and pay it by April 18. If you don't, you'll incur interest and penalties on your underpayment.

You may be counting on your tax refund to pay bills or meet a big goal. It pays to request that your refund land directly in your bank account rather than wait for a check in the mail. Just make sure to enter the correct banking details, though. If you put in the wrong account or routing number, it could delay your refund.

ALSO READ: Want to 10X Your Tax Refund? Here's How.

It typically takes the IRS three weeks to issue refunds for electronically filed tax returns and six weeks to issue refunds for paper returns. Therefore, don't expect to submit your taxes and see your refund hit a few days later. Instead, be patient. But also, if you don't get your money within these time frames, make a note to follow up with the IRS.

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Filing a tax return doesn't have to be a harrowing process. Use these tips, and with any luck, it will be smooth sailing from start to finish.

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