When it comes to filing your taxes, every detail counts. Even small errors in names or dates of birth can result in delays and headaches. But don’t worry: these four tax filing tips will help you avoid some of the most common pitfalls faced by taxpayers.
1. File Electronically
Choosing electronic filing goes a long way towards reducing the risk of mistakes in your return because many of the calculations are done and double-checked automatically. Another reason to opt for electronic filing is that it helps you get your tax refund as soon as possible.
2. Use the Correct Filing Status
Again, details matter when it comes to taxes. Even single-word categories like filing statuses can be the difference between a smooth filing season and a stressful one.
But what is a filing status, exactly? Your filing status is a category that determines how much tax you pay. There are five filing statuses:
- Single
- Married filing jointly
- Married filing separately
- Head of household
- Qualifying widow(er) with dependent child
3. Report All Your Taxable Income
Remember, all your income is taxable, even if you are paid with goods or virtual currency. This includes workers in the gig economy such as Uber drivers. Reporting all taxable income will help you avoid penalties and processing delays, but it can also lead to finding overlooked deductions or credits.
4. Double-Check the Basics
Getting the basics right is always important, and taxes are no exception to this rule. Here’s a quick list of the details we encourage you to double-check before filing your return:
- Name
- Date of birth
- Social Security Number (SSN)
- Routing and account numbers
- The IRS address (if you are filing a paper return; to find the address you have to use, click here)
- Make sure to sign and date the return
La Senda Enterprises: Tax Preparation and More
Need help choosing the right business structure? From income tax preparation to bookkeeping, at La Senda enterprises we offer a full range of professional services designed to make your life easier. We are located in Rancho Cucamonga, California, and serve clients all over the Golden State and beyond. Get in touch today by email at info@lasendaenterpriseinc.com or by phone at 909-466-5522.