Our team at TaxCom, LLC has been helping people with their taxes since 2011, and our experience has taught us a great deal about what the general public knows about the process. It has also taught us about the areas where people tend to trip up the most when filing their taxes, and we want to help remove some of those stumbling blocks. To do this, we have put together this article to go over three pieces of tax advice that we wish everyone knew.
- Develop a Filing System- One reason why people tend to struggle with their taxes is because they don’t have a good system for organizing all the relevant files, which means they have to go digging through piles of papers or digital documents to get the information they need when it’s time to file. To avoid this situation, we encourage you to develop a filing system–physical or digital–to keep track of all your statements, receipts, etc. throughout the year. This way, you’ll have everything you need in one place when tax time comes.
- Look at All Available Deductions- Another thing that our experts see a lot is people passing up tax deductions because they assume that they do not qualify. While not everyone qualifies for every deduction, it’s worthwhile to investigate all possibilities, as you may be eligible for more of them than you think. Of course, if you don’t have the time or energy to do that research yourself, you can always consult a professional for tax advice–our team will make sure you get the money you deserve from the IRS.
- Be Prepared to Pay Taxes on Your Side-Hustle- If your side-hustle earned you more than $400 this year, you’ll need to pay taxes on it. This can come as a shock to many newly self-employed people, so we want you to be prepared. If your self-employed work is your main source of income, we encourage you to talk to one of our experts to receive tax advice and ensure that all your forms are in order. We’ll help you navigate the red tape of self-employment and small business tax regulation.