5 Simple Tax Tips

26 Mar 5 Simple Tax Tips

Tax laws keep getting more and more complicated, and the ever-changing Affordable Care Act certainly hasn’t helped. As the filing deadline approaches, here are five simple tax tips to help you maximize your refund and protect your private information:

1. Use an intuitive filing program or hire a CPA. This point may seem obvious, but due to the complexities of the chameleon healthcare laws as they pertain to taxes, it is imperative to certify that you are claiming deductions and credits appropriately.
2. Look into the “Free File” Program. If your household income was below $60,000 last year, this is worth checking out. The I.R.S. is collaborating with various filing companies to offer this service to the consumer.
3. If you obtained coverage through the Healthcare Marketplace, see if you qualify for the Premium Tax Credit. Provided you did not receive the credit in advance, if you qualify, you will be able to receive it when filing your taxes.
   
4. Stay on top of your credit report. Tax season is a prime time for identity thieves to steal your information and use it for their own nefarious purposes. It’s critical to comb through your credit reports, and immediately report fraudulent activity. For the best protection, enroll in an identity theft program, like the one Exact Insure provides through Legal Shield.
5. Keep detailed, accurate records throughout the year. This includes mileage for business trips, receipts from travel expenses or volunteer work (which may count toward a tax credit), all tax-deductible donation records, and medical receipts. Utilize smart phone apps to help track mileage, and keep an envelope in your car, purse, or briefcase where you can easily stash receipts as they roll in.

As tax laws become more and more complex, taking these basic measures can give you confidence in filing, while also protecting your personal information and ensuring you maximize your refund.