In early May of 2025, the IRS had received 144.8 million individual tax filings, thus appearing to mark a successful, improved and slightly faster season of processing compared to 2024.
According to Jacksonville tax return preparation lawyer Angie Smith, Esq., filing taxes means you are contributing to the community since you help fund roadways, school systems, and other public services. Preparing your tax return can always be stressful. But following the proper steps will help.
Settle for either the standard deduction or itemized expenses and avoid missing any requirement, especially as the tax filing deadline nears. Here’s the step-by-step process you need to follow.
Essential Documents for Tax Return Preparation
One of the essentials for filing tax returns for precision and possibly a higher refund is collecting the required documents. These include a W-2 from the employer showing the annual earnings and taxes withheld. Freelancers need to have a 1099 with income to file.
Don’t forget to gather appropriate documentation of any more earnings formed, like rental properties or investments. Gather all your payment receipts for deducting expenses, including medical, charity donations, and mortgage interest. If you have children or another dependent whom you also contribute to, collect those expenses related to child care or education credits.
Have your Social Security number on hand. It will be necessary for identification. An organized file system for this information will make filing easier.
You need to keep your tax return filing accurate. Inconsistencies in your tax returns may result in you being subjected to tax audits, which can cause additional headaches. For more information about tax audits, visit the website: https://www.elsmithlaw.com/
Key Deductions and Credits to Maximize Your Refund
Knowing which types of credits and deductions you can avail yourself of will help you secure the largest refund. The standard deduction is the first deduction you must consider. It reduces the taxpayer’s taxable income. Itemizing deductions is better for some people with many medical bills, mortgage interest, and charity.
You may be eligible for tax credits that can offer substantial tax savings. Examples of these tax credits include the Earned Income Tax Credit (EITC) and the Child Tax Credit. The American Opportunity Credit and other education-related credits will help with the costs associated with college. Don’t ignore things like retirement contributions, which can directly reduce your taxable income.
DIY vs. Professional: Which Filing Method Is Right for You?
Making a decision between DIY tax filing and hiring a professional could considerably impact the way your experience is and the way you get your refund. If you are good with numbers and have a situation simpler than most, DIY might save you money. Many online utilities make the task easier by taking you through the deductions and credits.
For those who have complicated finance situations, such as anyone who owns a business or has multiple income streams, a good tax expert might be worth the investment. You can ask for their tax expertise to follow tax laws and reduce audit risk.
Choose an easy, quick option if your tax situation is simple.
Key Tax Deadlines to Avoid Last-Minute Rush
Remembering the tax deadlines could prevent the risk of the last-minute rush and a degree of potential penalty. For filing federal tax returns, the main deadline falls on April 15. If this day meets with a weekend or holiday, then the actual deadline shifts over to the next business day.
Self-employed individuals need to always keep in mind the estimated quarterly tax payments due on the 15th of January, April, June, and September when the tax year is being implemented. It may be possible to file for an extension if more time is needed, but keep in mind that the extension refers to additional time for filing late returns and not extensions of time for payment of any taxes.
The idea is to stick to a schedule, keep an appointment, and set an alarm so that the deadline will be met. This method guarantees that you stick to the tax deadline when you check the calendar.
Common Mistakes to Avoid When Preparing Your Tax Return
An error that people often commit is carelessly entering an incorrect Social Security number or bank account number.
Forgetting the deductions or credits that are required will cost you. Being conscious of tax-related expenses and income and keeping a detailed report of them is important for a proper tax return.
A trivial oversight that still keeps happening so often is the lack of signature or forgetting to put the date in the return form. Do not rush yourself when preparing your tax returns.
Can’t Pay Your Taxes? Here’s What to Do?
Whether you are unable to part with your tax payments or are in a state of worry, the good news you really need is that you have a host of alternative plans to put you in better shape for managing your tax-related matters. One of these is for you to file a timely tax return in spite of your inability to pay the full amount to avoid further penalties.
You could negotiate an installment agreement with the IRS to make more modest payments over a period of time. An offer in compromise might reduce your outstanding tax liabilities to less than what you owe.
Try suspending collections and avoiding the involvement of a collection agent if you are struggling financially.
Seeking advice is helpful. You can talk to a tax professional who can assist you in tax matters. If you are feeling overwhelmed by the task of filing taxes, don’t be. With enough preparation, you may find the process to be easier to follow.
Keep track of due dates. Double-check all entries to reduce errors and the stress of last-minute rushes. Filing early can help you focus on other financial issues and get your refund sooner if you qualify.
