Top Lessons Learned for First Time Tax Filers

If you’re a new filer, congratulations on surviving your first tax year!
Younger filers typically don’t own a home, didn’t sell a bunch of stocks, and likely don’t yet own a business.

Tax Advisor in India
If this was your first tax filing year, I bet you learned a few things. Here are some lessons learned you can apply for next year:

Set Up a Checklist Now

Your tax situation next year will be probably very similar to this year. Even if you experience some life changes you can use the taxes you filed this year as a guide for next year. Keep a checklist of all the tax documents you expect to receive. This checklist is crucial because you can start gathering your documents in one place throughout the year so you have everything ready to go when you sit down and file for your tax refund next year.
If you do have any life changes, keep in mind you may have some additional forms to keep track of. For instance, if you buy a house, expect to get tax forms related to your mortgage. If you have a child, you may have child care expenses you can claim. As these changes occur throughout the year, you can track related receipts and documents so you will be ready at tax-time. Don’t worry about knowing tax deductions and credits related to life changes.

File as Soon as Possible

Did you get a tax refund this year? If so, try to file as early as possible next year so you get your money faster. Your checklist and gathering everything in one place will help you file early so you can get your tax refund sooner.

Keep a Tax File All Year

The most time consuming tax related activity you’ll do is trying to find a form you received early in the tax year. You can avoid the scramble by putting all tax related documents in a single place. This way you know where your documents are and you won’t spend hours looking for them in your house or online in your account.

Read This Year’s Tax Return

It’s always good to take a look at your tax return after you’re done. Read it through and see what the various sections are so you can understand your financial situation more.

You may see different things about your finances that you never noticed. How are your charitable contributions? Did you earn any dividends or interest? How might you improve your financial situations by increasing those? Your tax return is a good barometer of your financial progress so give it a look.

Also, make sure you always keep a copy of the last three years of tax returns. You also may need your previous year tax return to refer to your previous year adjusted gross income since that amount is needed in order to e-file your taxes.

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You may consult with the Tax Consultant in India/ Tax Advisor in India for any kind of help. 


1 comment:

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