With the April 18 tax return deadline just around the corner, it's crucial to ensure that your tax return is accurate and that you've taken advantage of all available deductions and credits. 1. Verify personal information: Double-check your Social Security number, name, address, and filing status for accuracy. Mistakes in these areas can lead to processing delays or incorrect calculations.
Ashton’s Add-On: I recommend a secure network to protect your information if filing online. 2, Report all income: Ensure that you've included all sources of income, such as wages, interest, dividends, self-employment earnings, and rental income. Neglecting to report income can result in penalties and interest.
Ashton’s Add-On: Keeping a physical and/or electronic folder of this information throughout the year will save you time in this step. 3. Maximize deductions and credits: Thoroughly review your expenses to identify potential deductions, such as charitable/church contributions, mortgage interest, or medical expenses. Don't overlook tax credits, like the Child Tax Credit, Earned Income Tax Credit, or education-related credits, which can directly reduce your tax liability.
Ashton’s Add-On: Keep a written or typed list of clothing or other gently-used goods you may have donated to charities such as Goodwill throughout the year. 4. Utilize tax software or a professional: Consider using tax preparation software or consulting with a tax professional to ensure that you're accurately reporting all information and taking advantage of available deductions and credits.
Ashton’s Add-On: I’ve used H&R Block online for over ten years. Having my information from the prior year’s return already loaded into their system saves me hours of time and stress. 5. Review your return: Before submitting your tax return, review it carefully for accuracy and completeness. Make sure that all calculations are correct and double-check your bank account information for when you are asked how you would like to receive a refund if one is due.
Ashton’s Add-On: A good tax software should catch any potential errors or red flags to correct before you submit, which will help alleviate worries of being audited.
Careful attention to detail and help from the pros can help you avoid costly errors or missed opportunities to reduce your tax liability and increase a potential refund.
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