3 Ways to Get the Most Out of Your Tax Returns

Posted by hcvt on August 28th, 2018

Tax season is stressful for everyone. It is especially difficult if you aren’t familiar with tax laws, forms, or write offs. Additionally, with the growing number of professionals who have multiple jobs or choose to work on contract, tax season brings even more strain.

Many choose to do their own taxes. With helpful, low-cost services from popular websites, they simply enter their information, and get their tax returns. However, this generally ends up with taxpayers losing money on their tax returns. These websites also like to tack on fees for additional tax forms, and things can get very confusing.

If you have multiple tax forms, and you still want to get the most out of your return next tax season, check out these three ways to get everything you deserve.

1. Save Your Receipts

If you’re working on contract, pretty much everything you do for the company you work for is tax deductible. Save every receipt, and document your mileage (if you do a lot of driving for the company). Many simply have envelopes, folders, or shoe boxes full of receipts; however, there are several great programs and applications for computers that allow you to scan each receipt, so you have it on file without having to keep the hard copy. Additionally, you may find that much of your spending is done through online orders. Be sure to save all of your payment confirmations as well.

2. Organize Your Spending

Having your receipts is one thing, but actually recording every penny you spend is even more important. Separate your spending into categories. These categories can include: fuel costs, electronics, supplies, and/or Internet services. By creating categories for your spending, you’ll be able to write things off when it’s time to do your taxes.  Keep running lists of your spending, so when tax time comes around, you’ll only have to add up the numbers of each category.

3. Hire a Professional

If you’re still having trouble figuring out the best way to get the most out of your tax returns, it may be time to call a professional. In the long run, a professional CPA can save you money (especially if you have several tax forms to enter into the system), and they are more thorough.  Additionally, many CPA firms will offer you audit protection, which is definitely a bonus. You can find many credible CPA firms in Los Angeles that can help you with the tough tax questions. Do your research, and call around for quotes. You’ll find that hiring a professional is worth the peace of mind of having your taxes done properly.

There’s a reason everyone dreads tax season. It’s incredibly stressful, but if you keep your receipts, and organize your spending, you’ll find that some of that stress is alleviated. If you find that you need additional help, you can contact one of many CPA firms in Los Angeles to help you out.