Tax season is hardly anyone’s idea of a fun time, but for many people the calendar flipping over to April can feel like being led to the gallows. No matter how prepared they think they are, these people find the process of filing their household and/or business tax returns overwhelming. This has a lot to do with the complexity of the tax code, as well as the potential consequences for any mistakes or oversights. However, it doesn’t have to be that way.

Even if you’ve saved all your receipts for the past year and know exactly what your deductions were item-by-item, it’s still easy to feel like you’re in over your head. Starting early and being organized are obviously very important, but it also helps to approach tax season with a strong knowledge base you can use to streamline the process and avoid many of the most common pitfalls that can get you in trouble. You may not be looking forward to tax season, but with a few tips and reminders you should be able to get through it unscathed. Read on to learn some important tips for filing your personal or business taxes.

Understanding Tax Filing Deadlines

How does tax season work? Everyone should already know that April 15th is the deadline for filing your individual federal tax return. In general, most states that assess income tax have the same deadline, but it can vary from state-to-state. In Hawaii, the deadline is April 21st, while Louisiana gives residents until May 15th to file their state income tax return.

For businesses, the calendar becomes a little more complicated. This is because the type of business you have dictates when you need to file. Partnerships and S corporations are required to file by March 17th, with the extended deadline for filing being September 15th. C corporations, on the other hand have until April 15th to file with the extended deadline set on October 15th.

Choosing the Right Tax Preparation Software

One of the best developments to come along for individuals and businesses who struggle with tax season has been DIY filing software. These applications can make the process of filing much faster and simpler while also reducing the risk of manual errors or oversights that could trigger an audit. There are a lot of options out there, so you should pay attention to what each program has to offer. Here are some questions you should keep in mind:

• Are state filings included? If you live in a state that requires an income tax return in addition to your federal return, you should check to see if your tax software supports it. Some offer bundles that combine your federal and state returns into one product.
• Does it integrate with your accounting software? Of course you can enter all your information yourself. But this can be time-consuming and prone to errors, especially if you own a business or are self-employed. Some tax software can connect to popular accounting platforms like QuickBooks, meaning it can fill out most forms for you automatically and save you time.
• Will it check for errors? If you’re concerned about being audited, many tax software programs come with automated audit protection that scans your return and alerts you to any discrepancies or missing information.
• Can it calculate my refund? With many apps, you can receive an estimate of your expected tax refund to help you plan ahead for the upcoming year.
• How does it save my records? Exporting your return as a PDF or other type of electronic record can be helpful for recordkeeping and accounting purposes.

Tips for Filing Your Taxes Online

Tax software typically allows you to file your taxes automatically on your behalf. However, you also have the option to file online directly through the IRS. If you choose to go this route, there are a few steps you can take to make the process smoother for you:

• Gather all your documents ahead of time. Having your W2s, 1099 forms and other relevant documents at your fingertips and organized will make filling out your returns much faster and easier.
• Make sure your individual tax identification number (ITIN) is still valid. Your is renewed automatically each time you file, and you only need to worry about it if you have not filed an individual tax return for three consecutive tax years.
• Create an account at IRS.gov. This makes accessing your return and other key information much easier and can simplify the process of filing for this year.

Filing your taxes online, no matter which method you choose, can be much more convenient and faster than mailing your return.

Maximizing Your Deductions and Credits

Taxpayers can save a lot through various deductions and credits. For example, individuals can receive deductions for any dependents, higher education expenses or retirement savings. Businesses may be eligible for tax credits for activities including purchasing electric vehicles, providing childcare for employees and more.

Because there are so many potential credits and deductions that may apply to you, it’s important to check with a professional tax advisor to help you understand your options. Some tax software packages also provide prompts that can reveal certain deductions you may not be aware of, but this feature may not always get into all the complexities that pertain to your situation.

Avoiding Common Tax Filing Mistakes

The most common reason for an audit is a simple mistake, such as personal information being entered two different ways. Even if the mistake is an innocent one, an audit can have significant consequences for your personal or professional finances. You want to avoid these situations at all costs, which means being aware of some of the most frequent mistakes people make when filing their taxes, including:

• Missing the deadline: If you don’t think you’ll be able to file on time, it’s up to you to file for an extension or else get ready for the penalties.
• Not checking your work: From a misplaced decimal point to forgetting to use your full address, any typos or mistakes can lead to big problems.
• Missing out on deductions: Failing to take advantage of everything available to you means you’re leaving your money on the table, which makes expert tax advice all the more important.
• Not organizing your paperwork: Unless you keep all your forms filed and organized as soon as you receive them, there’s a chance you could forget something significant when preparing your returns.
• Letting mistakes go uncorrected: If you realize you’ve made a mistake on a form after you’ve submitted it, all is not lost. Filing an amended return prevents that mistake from being compounded in subsequent years and helps you avoid an audit.

Get Help Before Tax Season Arrives

Following these tax season safety tips can help protect you from the worst-case scenarios. But the best way to keep tax season from being the scariest time of the year is to have the right expertise on your side. Especially if you’re self-employed or own a small business, you need expert guidance to ensure you cross all your Ts and dot all your Is. Fortunately, Portfolio Advisors is here to offer the help of our highly qualified and experienced team. We can work with you to make sure your tax returns are airtight and put you in the best position for your financial security. To learn more about everything we can do for you, reach out and speak with a member of our team today.