Here are some tips to ensure the preparation of your taxes is as painless as possible for you and your family this year:
1. Maximize your retirement fund
There is still time to save for retirement and reduce your taxable income this year. You have until April 15, 2015 to contribute to your 401 (k) or an individual retirement account (IRA) for the calendar year 2014. You will be able to lighten your tax burden by adding to your accounts retirement, because both 401 (k) and IRA carried forward tax until you begin to remove them, you can do so without penalty start when you are 59 ½ years.
You can contribute a maximum of $ 17,500 ($ 23,000 if you are 50 or over) to 401 (k) and $ 5,500 ($ 6,500 if you are 50 years or older) to an IRA for tax year 2014. for example, if you earn $ 60,000 per year and $ 17.500 to fully contribute to your 401 (k), your taxable income would fall to $ 42,500 (excluding deductions or tax credits).
2. Organize your finances
The complexity of your filing system is up to you, but there are some essentials everyone should have in hand. Make sure you have your pay stubs or other document determining your total annual income. It's also a good idea to have receipts and proof of donation if you decide to itemize your tax deductions instead of taking the standard tax deduction ($ 6.200 for individuals).
Determine whether you want to itemize your tax return or take the standard deduction is not always easy. If you do not want to hire an accountant, a service like TurboTax or H & R Block are both easy to use programs software that will help you understand the best way to save money while paying your taxes. If you think you are going to detail the individual deductions, do not forget to include charitable donations you can do this holiday season.
3. Electronic File
If you want to receive as soon as possible tax refund, you must send a file through a tax preparation service rather than sending your documents by mail. More importantly, an online service will automatically catch errors that you might miss on a paper form, such as including your signature, and they are good at red flag issues that could cause an audit from the IRS.
E-filing your taxes is safe and secure, but if you send your taxes by regular mail or are concerned about identity theft, consider looking into a protection service against identity theft . These services monitor the use of your personal information on the black market of the Internet and public records to make sure it is not sold, traded or used by identity thieves. Read our identity theft protection reviews to learn more about these services.