Your tax refund can be a nice boost to your savings. Or perhaps you will want to use the money toward investments. But, tax season brings with it a great deal of anxiety. Skip the stress with these 3 tips:
1. Beware of Fraud
Thieves are becoming more adept at stealing identities and filing fake returns. As a basic rule of thumb, don’t return or engage in any phone calls or emails asking for your personal information, demanding immediate payment, or threatening to have you arrested. The IRS does not do any of these things; only scammers do.
2. Save Money
It’s not just a matter of trying to increase your return; you should also try to save money whenever possible. Choose Direct Deposit for your refund so you don’t have the temptation of a check in hand. There are also several free, easy-to-use tax preparation programs available, and certain people – such as those whose income is $54,000 or less and those who are age 60 or older – are even eligible for free tax preparation assistance at a Volunteer Income Tax Association (VITA).
3. Gather All of Your Information
Be sure to have all of your paperwork and documentation prepared beforehand, for your sake, and for your accountant’s sake if you have one. It’s always easier to complete your refund in one process than to go back and try to find missing information.