Filing your taxes for the first time at tax services in Orlando? No problem, there are so many other tax payers who had their first time and they went through it quite well. Yes, even the experienced tax payers have their issues, but as long as you avail reputed tax services Orlando, you will not have to face any problem as such. The process is not easy, but if you follow some suggestions, you can simplify it quite a lot.
Organize your finances
The best tax advice any reputed tax services Orlando can give you is to organize your finances. IRS demands documents that serve as proof and as long as you have them with you, they will never bother you. Be it your income statement, your receipts or your balance sheets, have all of them in one place.
Get relevant forms
If you are an employee, ask your employer to give you the W-2 form, if they have not done that already. This form will mention details about your annual earrings and the taxes, social security benefits and medical expenses that were deducted from it. If you are an independent contractor, you will need a 1099 form from all your jobs. This document only mentions earnings and no information about deducted taxes are given. You will have to figure them out on these own or you could take help from your chosen tax services Orlando.
If you any other form of income or investment, make sure you have relevant documents for them as well.
Decide your filing option
Once you have all necessary documents in one place, you can begin your filing procedure. Either use a software for this purpose or ask your accountant to do this for you. The latter option is better because the tax professionals ensure you pay the lowest amount in taxes. You may overlook a number of things, but they never will.
While searching for tax services Orlando, take your time and go for a firm that is reputable and has served years in the industry. If you can get a reference from friend or family, it will be even better.
Utilize as many deductions as you can
The biggest issue which people face when doing their taxes for the first time is that they overlook deductions. If you appoint tax services Orlando for the job, this will never be so. The most common deductions that you can avail are as follows.
- Mortgage Interest: If the mortgage on your home does not exceed a million dollars, you can deduct the interest amounts.
- Job Search Expenses: Looking for a job? Deduct the expenses incurred whether they are for your resume or for travelling.
- Charities: Your donations can be counted as a deduction if you give them to an organization that has been approved by the IRS.
Avoid delaying the process
As a first time filer, taxes may seem overwhelming and there will be so many instances when you will feel like putting them off. Avoid this because an early action on your part can save you from trouble.
If You Cannot Pay Your Taxable Amounts
So you owe taxes to the IRS? You should pay them as soon as you can because this tax debt is going to stress your budget and even hurt your credit rating. So do you know the amounts you owe to the government? Hire reputed tax services Orlando and they will help you deal with the situation. Also, if you fear a debt, you should start with your taxes at the earliest. The extra time will be really beneficial and make it easier for you to pay off your debt.
Whatever you do, please do not ignore your IRS debt. Doing so will worsen the situation, and you will have to face a lot of interests and penalties that will be remembered for a long time to come.
Figure out the amounts you owe
Sort through all the tax forms that you will get from your employer, you isurance provider or your mortgage lender. If there is someone who has not sent you a form as yet whereas they should have done this by now, get in touch with them. Also go through your expenses and see which of them can help you in claiming a deduction. Your chosen tax services Orlando will be able to guide you more about this. If you still have time, you might be able to increase your deductions as well. Consider paying an early mortgage payment, making a charitable contribution or setting up a retirement account. All three will benefit you and will reduce the amounts you owe to the government, making the debt more manageable.
If there are any tax credits that are applicable, make sure you utilize them as well.
Consider payment options
There are many ways with which you can pay off your tax debt. But you need to figure out which one will be more suitable in your case. Do you have a significant amount of savings? Maybe, you could use these for taxes. At least it is better than having to deal with an IRS issue.
Search for different lending agencies; you will come across some that will provide you with a loan. You can also use your credit card for the purpose, but go for this option only if the interest rate on it is not that high.
In some cases, the IRS can allow you to pay off your debt on an installment basis. Discuss this option with your chosen tax services Orlando or refer to the IRS for more details in this regard.
Ask for an extension
If you feel there is not enough time and you cannot pay your taxes before the deadline, notify the IRS. Ask them for an extension, and they might give you one if you fulfill their requirements. This will provide you with six more months to pay your tax bill. And by the way, an extension is only for the bill, and not the return. You will still have to file that before the 15th of April.
If you need more information about our Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.