Are you filing taxes this year? If you have done this before, you will have a fairly good idea of what is expected of you, but if this is your first time, you may be encountering problems and difficulties. So what is the best ways to deal with all of this? Hire reputed tax services Orlando, and they will make the process easier for you. In the meantime, we have some important information for you which many of you may not be aware of.
You can apply for a tax extension
If all the involved paperwork is too difficult for you to comprehend, and there is just not enough time around, you may need an extension. This will give you more time, and that means everything. You will be able to understand the process, and you will also make sure you are not making any sort of mistakes while filing up your forms.
Please note that filing an extension does not mean that you will be paying your taxable amount late. This will still have to be done before the April deadline. Take help from your chosen tax services Orlando, and they will determine and estimated amount of taxes for you.
You can file your taxes for free
The IRS does allow you to file taxes for free, if your income is below a certain level. Among all the available options, the IRS free file program is a great choice. This program is affiliated with tax companies, which will provide you with free tools for filing your tak=xes online.
You can get help for free
So you do not have the budget to hire tax services Orlando? Maybe you can sign up with IRS Volunteer Income Tax Assistance program, and they will help you for free. Generally, these programs are only meant for those people who have simple return forms to take care of.
Please note that these programs do have eligibility limits in terms of age, income levels and a few other factors. If you do not qualify, you will have to avail tax services Orlando, otherwise your taxes will be really tough for you.
Contribute to a retirement account
Have you started for your retirement? Now is a good time to take care of this. Make contributions to any retirement account, and later on you will be able to utilize them as deductions while securing your retirement phase as well.
Gather funds for paying your taxes
Your tax amount may appear a burden, but actually is nothing compared to the penalties and later payment fees you will have to face if you try to avoid it. Point is that pay your taxes on time, and arrange for funds beforehand. If you still cannot. Let the IRS know and they might allow you to pay taxes in installments.
Your firm must contain no errors
Go through your form, and make sure there are no errors. There must not be any calculation mistakes and your personal details must be correct and accurate.
Maybe Storing Tax Returns is not that Great an Idea
What do you do with your tax returns? Store them somewhere? Actually, this is what a lot of people advise, but we do not think it is a necessity, at least not in today’s digitized world. We are not saying that you should not keep any copies for records, all that we are saying is that hard copies are not necessary any more, and will just take up space, which can be used for other purposes as well. Instead, you should store it on your computer and on the cloud as well, just to be on the safe side.
Other than the returns, you should also store your receipts digitally. How do you manage all of this? We have prepared a guide for you. If you have any queries, discuss the matter with reputed tax services Orlando and they will advise you the best possible solutions.
Go through all your things
You have so many files to go through, right? Gather all your returns together because you will need to scan them so that you can store them in a digital format. As for your receipts and forms and other supporting documents, you should also have a copy of them. the IRS requires data that is three years old, but just to be on the safe side, we recommend that you should keep it for at least seven years.
Along with this, you will also have to keep documents related to your investments and homes for three years at least.
Scan all the documents
Now is the time to scan all documents, which you gathered in the previous step. Once you do, you can throw away all hard copies, even the returns forms. The IRS is pretty fine with digital copies as well. So you think this will save space and reduce clutter? Yes, that will be, but there is another better advantage of going digital. Finding things will become so much easier, whereas it will probably take you ages to find a document in all those piles of paper.
So scan all the documents and store them on your computer or in an electrical drive.
Reduce other paper as well
We are nearly done, and there is just one step left. Before we get to that, we will like to talk about your bills. How do you get them? By the mail? In the time to come, this means more paperwork through which you will have to sorr later on. Instead, you should ask your providers to give you electronic bills from now onwards, which will be emailed to you. These are a much better option and are easier to store.
Many of you will have already done this, but those who are left, now is the time to join the crowd.
Create a backup
Sort copies have their advantages and the disadvantages as well. As such, make two or three copies of your data.
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, Hunters Creek, Lake Nona, and Celebration, 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.