Cheer! It’s Tax Time Again!

You don’t cheer when it is time to do your income taxes? You wait until April 15th at 11:59 PM to mail your filing? What if the thought of paying your taxes did not have to make you hyperventilate? Tax season will be here before you know it, here are a few tips that might make tax time a little less stressful:

1. If you are self employed, do not forget to file quarterly. Then, you will not have to worry about insurmountable debt at the end of the year.

2. Make sure you pay enough. If your withholdings or estimated payments aren’t large enough during the year, the IRS can fine you.

3. If you do not want Uncle Sam to earn the interest on your hard earned money, pay less quarterly, but make sure you set enough aside in your savings account to cover the difference at the end of the year. Unfortunately, the standard estimate for a self-employed person is approximately 1/3 of your gross income, since you have to be concerned about Social Security and state taxes as well.

4. Filing electronically is faster and easier. Gather all of your tax forms together and file electronically. Unless you have an extremely complicated tax situation, this will save you the cost of paying a tax preparer, yet ensure that you get all the deductions for which you are entitled.

The program will ask a series of questions, provide all the pertinent forms, and make provision for you to electronically sign. As a result, if you are entitled to a refund, the amount can be directly deposited into your bank account in less than 3 weeks.

Please share your tax advice, so we can all quit dreading April 15th.

Tina

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