When it is that time of the year to sit down and compile every receipt and piece of tax information in order to prepare for filing your taxes, there are other elements of filing your taxes that you should definitely look in to. If you file your own taxes, then you should also take note to any changes that have taken place over the last year. The last thing that you would want to do is file for your taxes improperly and is in a situation where your taxes get declined, or even worse, a situation where you are going to be audited.
Both of these negative outcomes can be avoided by simply taking note to all of the changes that may have occurred over the year in regards to filing for your taxes in the most effective and efficient ways. Some of the changes that you will have to be aware of include considering and tax bracket changes, any changes to deduction status or personal exemption status, net pay changes, and any inflation changes. These are not all of the changes that you should be aware of; however, they are some of the most important. Also, think about buying
good tax software (like TaxWise) as it can help you avoid minor unnecessary mistakes.
When you are working through preparation of your tax documents to get ready to file for your tax return, one of the most important elements to consider includes knowing what tax bracket you are in. Each year the percentages for
tax brackets are reassessed and you will have to check in with your respective state to see where you fall locally, and on a national level. You do not want to have unrealistic expectations for your tax return. The tax bracket that you fall under dictates the amount of money that the government keeps; therefore, knowing your tax bracket is extremely important. Another big element about filing for taxes that is subject to change is the deduction status for your personal taxes, and your ability to file for personal exemption. These two elements have begun the process of becoming phased out for the next fiscal year, and therefore, the way that you have filed for taxes over the previous years will be different in the coming years. This should not affect your 2012 taxes; however, it will most likely be at a point of being phased out to where it will most likely affect your 2013 taxes. Another big element to filing for your taxes that you have to be aware of includes any changes to your net pay.
Net pay is now up to two percent, and this could change in the coming years; therefore, you should take the time to look in to this before confirming filing for your taxes. Finally, when filing for your taxes, you will have to consider any inflation that has occurred over the past year. Inflation will greatly affect your taxes and all of the math and calculations that you make in order to properly file for your personal tax return.
14 Comments
Claiming taxes for the blog this year is going to be interesting. I've kept careful track of everything and think I'll take it to a professional to do it this year. :)
ReplyDelete-Signed, Yep, I'm chicken
Speaking of blogs, I probably will have to start keeping track of my invoices too. [-(
DeleteYou will be alright. I think as long as you get the 1099 from the vendors, you can just enter it as self employment income.
DeleteMail4rosey: It's ok to let professional do the work for you. If you are not into doing taxes, it is not worth it.
DeleteI am so glad I hand over my tax to my accounting..It would give me a headache trying to do the right thing.
ReplyDeleteIt's nice that you have someone you can trust. You are very lucky.
DeleteTaxes is a word that puts dread into almost every person's heart! Thanks for the tips. I try to be organized through out the year so I'm not overwhelmed at tax season but I never seem to accomplish what I plan.
ReplyDeleteI am. It has always been this way. I usually lock myself in the room for weeks. I really need help, but haven't found the right people yet.
DeleteTaxes work my nerves. My mom is well over 65 and still has to file taxes on a little bit of supplementary income she makes. It’s ridiculous. The next thing I know, there will be a tax on her support hose because she wears them while she is working in a part time capacity while over the age of 75 and living and breathing. America is seriously tripping on how to squeeze all the money possible out of common folks. Okay, done whining. Great post with good info.
ReplyDeleteThanks Liz, but America is also very generous on low income folks too. I think they get a lot of breaks, while the working people pay through their noses.
Deletewe do our tax ourselves, and these are helpful information.
ReplyDeleteNot many people to their own taxes Betchai. I think you are wise to do so if your taxes are simple. When it gets complicated, you really need a professional.
DeleteI would love to get tax help. It is too complicated and a big headache for me.
ReplyDeleteI can understand that! I know sometimes when you have a complicated life, taxes get complicated too. :p
DeleteHave a thought? Please leave a comment here, and I will return as soon as possible. Thanks - If you have a minute, why not check-out the sibbling of Self Sagacity.com Blogger Broadcast. Extra Links = Spam = Delete.