It seems like a no-brainer, but not everyone is required to file taxes each year. You need to make a certain amount of money each year in order to qualify for the tax filing requirement. But that does not mean you automatically shouldn’t file your taxes if you believe you don’t need to.
There are some pretty good reasons out there to always file your taxes and seeking the advice of an experienced CPA is a great place to start.
Even in uncertain times, when tax deadlines may be extended, you may find you want to file your taxes to get certain benefits.
Even if you’re not required to file taxes, there are some benefits you can get from doing so including returns, dedications, and other breaks that come with filing taxes. And if you think you may have made enough to file, then you definitely need to. If you are unsure, it’s always best to err on the side of caution, even if it causes you a little bit of work. An experienced CPA can help.
Below are some benefits you may qualify for, but you won’t know unless you actually take the time to file your taxes.
Tax Deductible Charities
If you made a charitable contribution this year that qualified for a deduction your taxes, you will only see it if you file. While the charitable organization will give you the necessary paperwork for the deduction, it’s on you to file it with the IRS and to do that you need to file your taxes as a whole. So, if you have been waiting to get back that few hundred you donated to a local organization, then you need to file your taxes.
Certain taxpayers get refunds each year when they file, this is money the IRS gives back to you, that you are owed from throughout the year. It could be anywhere from a few hundred to a few thousand dollars and many people look forward to it every year to make payments on debts or perhaps to make a big purchase. If you would like to get yours this year, then you need to file your taxes and do so on time.
If you are someone who does a lot of gig work that maybe does not necessarily meet the threshold for freelance tax, you still might be paying out of pocket costs to do your work. If you are hoping to get that money back, then you need to file your taxes in order to get it.
Are There Penalties for Not Filing?
Yes. Filing late incurs penalties and interest and the longer you wait, the more gets added on. If you wait for too long, then these costs will simply compound onto your next year’s taxes. So, make sure to contact an accounting firm for tax preparation services.
What Documents Do I Need to File My Taxes?
You will need a few different things depending on the kind of work you do. But you’ll need your personal information (social security number), the personal info of any spouse or dependents, records for potential dependents, unemployment documents or employment forms, self-employment tax forms, or other forms if you receive income in a different way.
Do not wait to file your taxes, even if you are not sure you need to file them. A full-service accounting and tax firm will get it done right and in a timely manner.
If you are looking for an experienced CPA and Tax Accountant in Michigan, Tax Avenger is the expert you need. Serving the Canton community and beyond our CPA Firm is dedicated and committed to providing exceptional service to our clients.
Our firm prides itself on the extensive international and local experience in accounting and taxation while offering a full complement of services from Business, Individual, Tax Resolution and Consulting to Payroll Services, and so much more. Call today for a Free Consultation! Remote tax filing available.