Working after FRS Retirement
Income Tax Filing Tips
Tax season is upon us. Are you ready to file your 2021 tax returns? Here are some helpful tips to consider when filing your return.
1. Make sure you include all of your tax documents - Before you attempt to file your 2021 return, or go and see your tax professional, make sure you have all applicable tax documents necessary like any applicable W2s, 1099s, etc. Having all of your tax information in advance can help avoid an error on your return.
2. Consider and itemize any applicable deductions for your return - If you are claiming any deductions on your return, have an itemized list of each deduction, the deduction amount, and any applicable documentation to accompany each deduction like a receipt or invoice. This is a good way to help you avoid forgetting any deductions which could be included on your return.
3. Don't forget to have tax IDs for dependents - If you are claiming any dependents on your return, have their tax ID information available so you can accurately claim each dependent.
4. Consider an IRA contribution - Another avenue for potential tax savings, and boosting future retirement savings is considering an IRA contribution if you haven't already done so. Just because 2021 has ended doesn't necessarily mean you are unable to contribute towards an IRA for the past tax year if you file on time.
5. Consider professional assistance - Tax filing can become complex depending on how you file, and your dependents, deductions, and various income sources. Having a professional assist you with making sure your return is accurate could be worth the expense.
6. File on time - Filing before the April 18th tax deadline can help avoid headaches and potential fines later on in the year. You can request an extension if necessary when completing your return, but having your taxes organized and completed in advance can help you focus on the road ahead.