Is tax season around the corner? Oh my God, I haven’t prepared the documents yet. What about my refunds? How will I manage tax audits?
Hold on! There is a lot of stress that comes with tax season. What do we suggest? Take a deep breath and read this blog! This post will be your go-to guide to help you with your tax situation and stress management. Ready to know? Let’s go!
Key Dates and Deadlines for the Upcoming Tax Season
Mark your tax dates and deadlines. We need to pay the taxes on time to avoid any penalties. Most people follow an annual tax calendar. That means their tax year ends on December 31. If you follow the same calendar, your tax filing deadline will be April 15th of next year.
Until that date, you have time to prepare your documents and file for taxes. As a concern for 2025 the upcoming tax date will be Tuesday, April 15th.
Furthermore, you can apply for a tax filing extension for up to six months if you aren’t prepared with your documents. For instance, K1 forms take longer to prepare and send out. You can apply for an extension if you have any pending K1 forms that haven’t arrived yet.
Get Bookkeeping Service at the Beginning of the Year
As with every other work in this universe, tax preparation depends heavily on your organizational skills. Have you ever thought about bookkeeping services or just relied on collecting bills?
Hire a Bookkeeping Expert:
If you just collect bills and throw them on your accountant’s table, it will take more time to organize them and get things aligned. Ultimately, it will increase your tax preparation charges.
However, if you consider bookkeeping services at the start of the year, it will save a lot of effort during tax season. Although bookkeeping services are highly valuable for businesses and individuals with multiple income streams.
Gather Your Documents:
If your income is aligned, all you need to do is gather your documents. Any receipt, statement, or bill that feels relevant, just put it aside. That way, when you work with your tax preparer, you don’t have to search the whole house for the document or go through a pile of files.
Time Management Tips for Tax Season
Who said you needed to spend three and a half months working on taxes? Yeah, that is the time duration you get from the IRS. but it’s to collect all the relevant forms and receipts from your employers, business partnerships, and non-profit organizations.
Set a Tax Preparation Schedule:
Schedule a meeting with your tax preparer. Even better, send them an email and ask for any documents they might need during the meeting. This way, you and the tax preparer will both save time.
There is no one answer to how much time it will take to prepare your taxes. But one thing is for sure: it will not cost you three months of preparation.
Understanding NYC Tax Deductions
You are in NYC, which means a dual tax system. On top of that, you have to file both federal and state taxes at the same time. This can make things pretty complex. However, there are credits and deductions that can help you save a lot on taxes.
Property Tax Deductions:
Homeowners in New York City can take advantage of property tax deduction programs. One considerable program is the New York City School Tax Relief (STAR) program. This program has two levels:
- Basic STAR: Allowing exemption or reduction in school taxes for homeowners living in New York City.
- Enhanced STAR: The enhanced program is available for senior citizens (age above 60) who meet specific income criteria. Typically offering more tax reductions.
Rent Deductions:
The rent deduction program is offered to NYC residents who don’t own property in the state. Renters don’t get direct tax deductions; instead, they get credits. Usually, a portion of their rent can be claimed from the state tax agency.
Charitable Contributions:
Your charitable contributions are deductible by the government. If you have made a donation to a qualifying non-profit organization as a charity. You can claim a deduction.
Insidious Tip: Be sure to collect statements of your charited goods and stocks.
Final Thoughts:
Tax season can be a mess. So be prepared with your documents. Furthermore, go with a good bookkeeping service to maintain the record for the whole year. Additionally, prepare and file your taxes on time to avoid any late fees and penalties. You can ask for an extension if required.
However, keep in mind that extensions only count papers and form submissions. If you owe something to the IRS, you need to pay it right away. Lastly, if you have a complex tax situation, DIY tax preparation is a big no-no!
Common Tax Help Questions and Their Answers
1- In What Month is Tax Season Over?
- Tax season ends on April 15 for calendar year filers. However, if you have requested an extension for six months, your tax season might last longer. You could expect the end date to be October 15th.
2- How Early Can You File a Tax in 2025?
- You can file your taxes on January 29 and onward. It is suggested to file on time—not too early or too late.
3- What Happens If I File My Taxes Late?
There can be multiple scenarios if you file late. For instance, if you don’t owe anything, there will be no problem with filing late. However, if you owe taxes, there can be penalties. It is suggested that you file on time or ask for an extension from the IRS. Not only will it give you satisfaction, but it will also prevent audits.
4- Why Are My Refunds Late When I Filed Them On Time?
It can be due to tax season. A lot of work for the tax department might cause the delay. Additionally, there can be missing details on your refund that cause a delay. If there is something wrong on your end, the IRS will contact you and ask about it. Otherwise, you can call the IRS directly if refunds take too long.
5- Do I Have to File Taxes If I Make Under $10,000?
There is no limit on the income level at which you can file taxes. You might get some refunds due to the multiple credit programs offered by the federal government. Furthermore, it’s a legal order to file taxes, even if you make little money.
6- Can You Get a $10,000 Tax Refund From the IRS?
Possibly, you can get a refund of $10,000 if you have paid more taxes than you owe. However, it happens only in rare cases.
Understanding Common Tax Issues and How to Address Them
Expert Tax Preparation Services in NYC: Your Guide to Stress-Free Filing
