The unfortunate truth of the matter is that tax season can get pretty expensive, especially if you don’t take the time to plan ahead and prepare. There are, however, plenty of cheap tax return ways to do your taxes, whether you’re filing your own return or hiring an accountant to do it for you.
These ten tips will help you find your best solution when it comes to paying less at tax time this year.
Use Software
If you’re looking for ways to get your taxes done on the cheap, there are a few options available to you. One option is to use tax software. This can be a great option if you’re comfortable doing your own taxes and just need a little help getting started. Plus, using tax software can often be cheaper than hiring a professional.
Find Out About Free Filing Programs
There are a number of free filing programs available to taxpayers. The IRS offers a program called Free File, which is available to taxpayers with an adjusted gross income of $66,000 or less.
Taxpayers who earn more than that can still use the program if they meet certain criteria.
Additionally, many tax software companies offer free versions of their products for those who qualify. And, finally, some tax preparers will do your taxes for free if you qualify.
You can find out more about these programs by doing a little research online or by talking to a tax professional.
Choose Cheap Software
When it comes to filing your taxes, there are a lot of software options out there. Some are more expensive than others, but that doesn’t necessarily mean they’re better.
In fact, there are plenty of cheap tax software options that can get the job done just as well as their pricier counterparts. These programs often have customer reviews and ratings to help you decide which one is best for you.
Go to a Local Office Supply Store
One way to get your taxes done on the cheap is to go to a local office supply store. Many of these stores offer tax preparation services at a fraction of the cost of hiring a professional. Plus, you can often find coupons and discounts that can further reduce the cost.
While they don’t always provide as much in-depth guidance as an accountant or financial advisor would, many people feel that the service they provide is just as good for their needs.
Ask Around
Asking around is one of the best ways to find a cheap tax return service. Talk to your friends, family, and colleagues to see if they have any recommendations. Once you’ve got a few options, do some research online to compare prices and services.
You can also check out customer reviews to get an idea of what others thought of their experience.
You should know that there are many different types of preparers, so make sure you ask about education level and years in business before choosing a company.
Also, be aware that some preparers might offer both low-cost preparation and assistance with filing at no additional cost while others may only offer low-cost preparation. Ask which type of help they provide before choosing a preparer.
Avoid Common Mistakes That Can Cost You Money
If you’re looking to save money on your taxes, there are a few common mistakes you’ll want to avoid.
- First, make sure you’re taking advantage of all the deductions and credits you’re entitled to.
- Second, be careful of overpaying or underpaying your taxes both can result in penalties.
- Third, don’t forget to file your return on time!
- Finally, keep good records throughout the year so that come tax time, you’re not scrambling to track down receipts.
By following these simple tips, you can ensure a cheap and stress-free tax return.
Know What Documents You Need To Bring In Person
No matter how you file your taxes, you need to know what documents to bring with you.
This includes your forms from each employer, as well as forms for other income sources. You’ll also need proof of any deductions or credits you’re claiming, such as charitable donations or medical expenses.
If you’re unsure what to bring, your tax preparer can help you out.
Don’t Get Sucked Into the Home Office Scam
There are a lot of scams out there promising big tax deductions for those who work from home. Don’t be fooled! The home office deduction is only available if you use a portion of your home exclusively and regularly for business purposes.
If you do qualify, the deduction is usually a small percentage of your overall expenses. Plus, it can be difficult to prove that you use part of your home exclusively for business.
If that wasn’t enough reasons not to get sucked in, keep in mind that qualifying businesses must have at least $5,000 in gross receipts or an average annual net income (excluding losses) of $500 per year over three years with the last two years being consecutive before applying this deduction.
So unless you’re making some good money from working at home, chances are it’s not worth all the extra hassle!
Keep Track of Receipts After You File them in Case You Need Them Later
You might not think you need to keep track of your receipts after you file your taxes, but it’s always better to be safe than sorry. If the IRS ever has any questions about your return, they’ll likely ask for proof of your expenses.
Plus, if you ever need to amend your return, you’ll need those receipts handy. But don’t worry, there are plenty of ways to get this done without breaking the bank.
Conclusion
First, try doing your taxes yourself using online tax software. This can be a great way to save money on tax preparation fees. If you need help, consider using a tax preparer who offers a free initial consultation.
This way you can get an idea of what the cost will be before committing to anything. You may also be able to get your taxes done for free through certain government programs or non-profit organizations.
Another option is to negotiate with your tax preparer for a lower fee. This is especially effective if you are a loyal customer or have complex taxes. You can also look for discounts or coupons from tax preparation companies.