Since you’re a citizen of United States, you have to file your tax every year. It is quite a necessary factor for every people to pay their tax on time (15th April) and submit their tax returns at the end of a transaction year. For many of us its difficult to understand all the legal terms associated with tax. So, you need to appoint an experienced tax preparer who can guide you to file your tax returns. According to the Federal Govt. estimates 60% of people in States hire preparer to file tax return in a right way. There are so many things to do while filing tax returns. So, here are some tips to file your tax return successfully.
6 Tips on filing tax return
Read on to know the tips that you must know to file your tax return.
1. Find out a potential tax preparer
If you’re new with tax, then you need to find out an experience tax preparer. Because tax return filing process is little more complicated. Ask your close friends or advisor in order to get a referral. Make sure the preparer is experienced and he/she has PTIN (Preparer Tax Identification Number). The fees will depend on your case. Try to fix an appointment with the tax preparer as early as possible. It is very important to file the tax return on time.
2. Arrange your documents
You need to arrange all required documents when you’ll file your tax return. You need to submit all the documents related to your job (if employed) such as total amount of income and the amount of tax that will be deducted from the salary. If you have made any transaction with banks and companies, then you have to collect certain details from all the people who have deducted tax while making a payment to you. You have to even provide them a summary that will consist of information about your earning and expenses.
Make sure you’ve all the documents of any major purchase (property) you’ve made, or have taken out a loan. Incase of large number of transactions, you have to prepare a statement of your sale and purchases. Don’t panic, if you hire a tax preparer, then he/she can make your task easier. The preparer will help you to arrange these documents and calculate the taxable income.
3. Keep ready all personal information ready
Make sure you have all the personal information ready. For instance, if you’re claiming for dependants tax credit, then you should provide the person's personal information (SSN, address). Apart from these, you need to provide information of rental property, property you sold or bought including dates, the original amount you paid or received while filing for return.
4. Make yourself updated
Try to know if there is any changes in tax law. Don’t just rely on your tax preparer. Search online to get more update on recent years tax law. You can browse irs.gov to know all the details on tax filing, return or updated low (if any).
5. Ask charity for written acknowledgement
To get itemized deduction on charitable contributions you need to keep all the specific documents ready while filing for tax return. Ask the charity to give a written acknowledgement mentioning the amount or the gift they received from you.
6. File your tax return
The tax preparer will also help you to select the proper income tax return (ITR) form based on the nature of your income. You need to fill out the ITR form and submit it to your income tax officer along with an Acknowledgement form. Your tax preparer will guide you to get a tax return in an XML format. After this, you need to upload the file with a digital signature to complete the process of filing your tax return.
Final words
Make sure you complete all the necessary tasks before the last date. You need to file tax return before 15 April to avoid late filing penalty. Try to choose an experienced and an efficient tax preparer who can make the task smooth and can complete within the stipulated time period. Don't forget to check his qualification. Try to contact the other existing customer to know whether or not, the preparer is perfect for this job.