It’s amazing how quickly times passes, because as everyone knows, the calendar recently flipped to September. That means in just four months, we’ll be in a new year and 2014 will be in the books — meaning that taxes, W-2s and other tax matters will be on our minds in the early weeks and months of 2015.
So what things do you need to know to prepare for another round of tax filings? There are a few basic factors you should be aware of before filing:
- First of all, tax laws change all the time. You’ll want to do as much research as possible to ensure that your filing is compliant with all of the tax regulations, and that you haven’t accidentally left out crucial assets or information that could spark action by the IRS down the line.
- Remember that there are numerous ways for you to file your taxes. You can file the traditional way with a paper filing; you could file electronically with the help of tax software; or you could bring in a tax professional to look over your individual situation. Be wary of the electronic method though — it can increase your chance of being audited, since it is easier to review than a paper filing.
- Another knock against the electronic filing is the security risk. hackers and scammers are far too prevalent in our society today, and obviously there is some very crucial and private information contained on your tax forms. Ensure your filing’s safety before committing to it.
- Finally, remember that if you need more time to get your tax filing done, you can file Form 4868 to get an extension on the deadline for your tax filing.
Source: The Motley Fool, “Filing Taxes for 2014: 5 Things to Know,” Selena Maranjian, Aug. 24, 2014