Top 5 Helpful Tips For Tax Season
The 2017 tax season is winding down, and you may still be in the thick of things. Whatever your situation, know that there are tax benefits available to you throughout the year. Tax season doesn’t have to be as painful as you imagine. There are some ways you can get more out of filing your 2016 tax return. First, you want to make sure you get organized and have one place where you have all of the information you need to fill out the tax return. Aside from that first priority, here are 5 helpful tips for tax season.
Keep Your Identity Safe
If you received an Identity Protection (IP) pin in the past, then you must provide this number on your tax return this year and on all future returns. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the filing of fraudulent returns under their social security numbers. Consider the IP PIN to be your friend in getting your tax return accepted by the IRS. The pin changes every year, so you have to keep up with notifications. If you do not receive the notification in the mail, you can go to the IRS website to retrieve your PIN.
Get Health Coverage In Order
When it comes to your health insurance, make sure you know what you need to report to the IRS. You and your family are required to have minimum essential coverage or qualify for a health coverage exemption, due to the shared responsibility provision. Most taxpayers just have one responsibility: Check the box indicating that you had health coverage for all of 2016. If not, you may need to fill out Form 8965 (Health Coverage Exemptions) and Form 8962 (Premium Tax Credit).
Be Smart With Filing
The quickest, easiest way to receive your tax refund is to file your return electronically and use direct deposit. If you owe anything, use IRS direct pay, connected to your savings or checking account. Make sure you keep a copy of your filed tax return. This can save you a lot of trouble just in case you happen to need it.
Declutter and Get A Tax Break
You can make money by donating your unneeded items. There are many charitable organizations that accept certain items such as books, electronics, clothing, and other household items. The item’s fair market value sets the limit of the deduction, and items must be in at least good condition to be deductible.
Put Your Refund To Good Use
It’s best to make wise decisions with your tax refund. Consider putting your money to work, increasing your 401(k) contribution after adjusting your W-4. Your money can go toward your retirement and you won’t feel guilty for throwing it away.
Author – This article was written by a member of Abajian Law