Tax time is difficult for everyone. Whether you have a pile of paperwork to fill out and send in or you’re only faced with a few forms to deal with, taxes are something that everyone seems to put off until the end.
Fortunately, technology is bringing us closer to a stress-free tax experience. Yep, we said it. Artificial intelligence and automation have made things a lot easier when it comes to taxes.
We’re going to talk about smart taxes in this article, giving you some tax prep tips on how to work with automation to streamline your experience.
Let’s get to it.
1. Organize Your Documents Digitally
Many automation services help you by connecting to your bank statements or analyzing digital logs of your spending information.
These services are only available to you if you’re working with a digital service that charts your spending. Services like TurboTax, for example, team up with companies like Mint to transfer your information without any effort.
Even if you’re not using a financial assistance application to chart your spending, make sure that your receipts and bank statements are cataloged on your computer somewhere. A lot of times, email receipts can be smoothly entered into your computer software.
The more information you can store online, the less stressful it will be to input it into your tax automation system. You can read more about the smart tax input process and see how useful it is.
2. Hang Onto Your Usual Tax Documents
Even though most tax information gets passed around online these days, it’s still smart to hang onto the key forms that you know you need for tax season. W2s, for example, are typically sent out in physical form by employers.
Many employers send W2s or 1099s via email as well, but that doesn’t mean that every company has the ability to do so.
So, hang onto any physical copies of forms that might be hard to track down online. There’s nothing worse than getting lost in the stream of emails and correspondence with HR to hunt down a lost form.
The nice thing is, you can scan these forms and input them into whatever automation software you’re using. While you still have to have the documents in some form, you no longer have to sift through all of the information they contain.
3. Do Your Research, Use One Service
Find a service that works for you and stick to it. That seems like a no-brainer, but the idea is to do your research and make sure that the company you go with will work before you even sign up.
The benefit of sticking around with one smart tax filing service is that they’ll keep your information logged, so you don’t have to conjure it back up next year.
You’ll find that the second time you sit down to file your taxes, you’ll hardly have any information to put in. It’s even simpler if you’ve scanned all of your documents and organized them in advance.
4. Keep Deductions in Mind All Year
Smart tax services might offer suggestions for deductions while you’re filing, but technology isn’t quite to the point that everything gets covered. Make sure you’re aware of the purchases that you can deduct from your taxes and write them down for tax time.
Be even more vigilant if you’re self-employed or work for a small business. Most purchases that have to do with your business can be written off, and you’ll save a lot of money in the long run if you remember to deduct them from your taxes.
Automation services tend to explain just what can be written off and what can’t. So, make a note of everything you think you could deduct, even if you’re not sure or skeptical.
5. File Throughout the Year
Just because taxes come around at the end of the year doesn’t mean that you have to wait until then to start setting things up.
You can enter information into your chosen automation service whenever you get a new form or document that pertains to taxes. Additionally, those who are self-employed have the option to pay their taxes every quarter instead of every year.
This is for people who end up paying their taxes and don’t get refunds. Dividing your taxes up into quarters helps to create manageable payments. It also prevents you from getting to the end of the year and realizing that you have a lot of taxes to pay.
Automation services can help you manage those quarterly tax issues as well.
Get a Good Idea of What Smart Taxes Are
“Smart” technology can seem like something that’s beyond our grasp. The best way to demystify the hype about smart taxes is to sign up and try the services. See how it works for you, and see if you face any challenges.
Odds are, you’ll be pleased by how simple and streamlined the process has become. The thing that stands out to most people is how beneficial the suggestions are, and how simple the process of working through taxes is.
These platforms create a digital experience that presents you with the pertinent questions for your taxes and fills in the rest. Additionally, automated services have every tax write-off or opportunity logged in their databases.
That means that whenever you’re in a position to receive a credit or shave some money off of your taxes, you’ll know. You won’t miss out on a chance to save money on taxes again if you fill out your information correctly.
You will also sleep a little easier knowing that you haven’t committed any kind of fraud through a simple mistake. Taxes are tricky when they’re just a stack of papers, and it’s easy to make mistakes.
Sometimes those mistakes can get you in trouble. Rest assured, though, smart tax services will steer you away from any of those issues.
Interested in Learning More about Smart Taxes
Even though working with smart taxes makes things a lot simpler, you might not be convinced just yet. We understand, and we’re here to put you in touch with more information.
Explore our site for more information that will help you reduce the stress of the upcoming tax season.