5 Tips for Tax Season if You Aren't Sure What to Do

If you are like a lot of people, you might dread tax season. This might be particularly true if you don't know much about filing or paying taxes.

It's normal to be nervous and to feel a sense of dread when it's time to do your taxes, especially if you aren't knowledgeable on the subject. But no need to worry, as these tips for tax season can help you out a lot if you don't know what to do.

Don't Wait Until the Last Minute

First of all, do not wait until the last minute to start making plans to do your taxes. If you file your taxes late, you could be charged a penalty for doing so. 

Even if you don't end up filing late, you could end up feeling rushed or could be more prone to making mistakes if you wait until the last minute to file your taxes, too. 

Therefore, you should start thinking about what you need to do and how you are going to file and pay your taxes well in advance, if at all possible.

Gather as Much Documentation as Possible

Be aware that you are probably going to need quite a bit of documentation when you file your taxes. You'll need the social security number for each person you are filing on your taxes, including any dependents. 

You'll need proof of income and expenses and other documentation. Bringing along everything you need when you go get help with filing your taxes can help you avoid delays and issues. Keep sensitive documentation handy, such as W-4s, I-9s, and any charitable donations you’ve made. 

Try to keep track of any IRAs and medical funding, such as HSAs, and keep tabs on any new changes to your family, such as a new baby or a change of dependents.

Know When to Hire a Tax Lawyer

Not everyone has to hire a lawyer during tax season, but in some cases, it does pay to seek legal representation. You might need to hire a tax attorney if your tax situation is particularly complicated or if you have ever found yourself working with the IRS, for example. 

If you do think you need to hire a lawyer, make sure they have plenty of experience in helping people with taxes and that they have a good reputation.

Don't Try to Do Your Taxes On Your Own

It can be tempting to try to do your taxes on your own, especially since you might have seen advertisements for do-it-yourself tax software programs or since you might know people who claim that they do their own taxes and that it isn't difficult for them to do. 

However, you should not try to do your taxes on your own. Instead, you should hire a professional tax preparer to help you, even if you aren't going to be hiring a lawyer.

Be Truthful

Lastly, always be truthful when filling out your tax return. This can help you avoid getting audited, and it can help you avoid penalties and even legal issues with the IRS.

It's normal to not know what to do during tax season. However, these tips should guide you, even if you know little to nothing about filing your taxes, so you can go forward with a good bit of knowledge and peace of mind.