The majority of the recent changes that were made to the Tax Cuts and Jobs Act took effect in the 2018 tax year. These changes affected U.S. citizen individual taxpayers and were set to expire in the year 2025, as stipulated in the U.S. Tax Code.
These changes may seem too complicated for most taxpayers and this is the reason why asking for help from a professional is always a good option. However, hiring a professional would also entail additional expense from your end. Instead of hiring someone to do your taxes, might as well do it yourself.
There’s a plethora of online tools that one can use for tax filing. These tools will largely help make the process of tax filing such a breeze. Besides, chances are high that you will get a faster refund if you file your taxes electronically. So, stop looking for a CPA to help you with your taxes, but rather check out the following tools that you can use for all tax-filing related stuff.
Online Instant Forms
Obtaining IRS forms is one less thing to worry about these days because these can be obtained online. Whether it’s a W-2 or a 1099 form you need, you can just download all of these from the internet instead of going to a major office supply store.
If you’re an employer who need to report your employee’s gross income, Medicare and Social Security earnings then you should give your employees form W-2. But, if you hire contract workers then you will need to provide them with Form 1099. This is a must if you are paying them $600 or more in a year. Fortunately, you can now easily create 1099 yourself because there are already websites which can help you process it. Don’t forget that this form 1099 has to undergo verification from the IRS so make sure you file it with them.
Apps for Digitizing Receipts
Part of the stress and complexity of tax filing is the need to collate all the receipts and records of expenses for a more accurate filing. But, when you have to deal with too many things with your business on a daily basis the simple task of digitizing these receipts and expenses could turn out to be overwhelming. If you find yourself in the same situation, then consider downloading an app such as Shoeboxed which is a tool that makes digitizing these documents a lot easier to do. This app is capable of extracting and organizing information from your receipt. The result would be an archive of organized information regarding your expenses and receipts.
Automated Mileage Tracking
Entrepreneurs who use their vehicles for many of their business-related transportation needs would need to track its mileage and maintenance costs. All this information is also crucial when filing for annual taxes. Although you have been used to using your pen and notebook to record the costs of maintenance, mileage and fuel there is a better and faster way to do it. You can now download an app that you can use for automated mileage tracking. One example of this is the MileIQ app that has an automatic drive detection feature. It is capable of detecting when you start driving. To ensure that it records the right mileage, you have to tag the trip as personal or business.
If you are still among the few U.S. citizens who do your taxes manually, it is high time that you should consider learning how to do it online. Don’t worry because it is not going to be as complicated as you think it would be. The use of the above mentioned apps will certainly make the process a lot easier and faster for you.