February Challenge: Knock Out Your Taxes
While filing taxes isn’t exactly known for being fun, settling with Uncle Sam doesn’t have to be complicated. In fact, you can be ready to file in three easy steps!Take part in EveryDollar’s February Challenge and prepare your taxes early. Here’s how to get started:
1. Gather your forms. There are all sorts of documents you might need before filing your taxes—W-2s, 1099s, and Schedule Bs to name a few. Some forms deal with your income. Others involve your deductions, interest you’ve paid on mortgages or student loans, or investment income you’ve collected. Make sure you have all your forms together before you start filing.
2. Decide how you file. Choosing between tax software and a tax professional can put even decisive people at a crossroads. Research the options and decide what works best for you. Just a tip from us: We’ve seen people get an average of $791 more back in their tax return by using a tax professional. A tax pro can help you identify the documents and forms you’ll need and make the process less painful.
Do you really need a tax pro? Take this quick quiz!
3. Determine the best time to file. The deadline for 2018 is April 17 and that’s still a couple of months away. Even so, filing early can be good for two reasons. First, you can finish the process and have peace of mind. Second, if you need to pay taxes to the IRS, you still have time to save the money you owe.Preparing your taxes is the hard part. Once that’s done, you’re home free! Let’s show everyone that preparing to file your taxes early is a big money win for 2018!