As the April 15 deadline for filing taxes approaches, many Americans may be feeling overwhelmed and unsure about the best way to file their taxes. In order to provide some clarity and guidance, ABC News’ Alex Presha recently spoke with the Editor-in-Chief of Investopedia, Caleb Silver, to get his expert advice on the matter.
During the interview, Silver emphasized the importance of being proactive when it comes to filing taxes. He stressed that waiting until the last minute can lead to mistakes and unnecessary stress. “The key is to start early and get organized,” Silver advised. “Don’t wait until the deadline to start thinking about your taxes.”
One of the first things Silver recommends is to gather all necessary documents, such as W-2s, 1099s, and receipts, before sitting down to start the filing process. This will not only make the process smoother and more efficient, but it will also ensure that all necessary information is included.
When it comes to actually filing, Silver suggests using an online tax preparation service. “These services make the process so much easier and can help catch any potential errors,” he said. “They also have the most up-to-date information and can ensure that you are taking advantage of all deductions and credits available to you.”
For those who prefer to file their taxes manually, Silver recommends using a tax prep software or hiring a professional tax preparer. “Make sure to do your research and choose a reputable tax preparer,” he advised. “Check their credentials and ask for referrals from friends or family.”
Another important aspect to keep in mind is the new tax law that went into effect in 2018. Silver emphasized the importance of understanding how the changes may affect your tax situation. “The standard deduction has nearly doubled, but some deductions have been eliminated or limited,” he explained. “Make sure to familiarize yourself with the changes and how they may impact your taxes.”
When asked about common mistakes people make when filing their taxes, Silver highlighted the importance of double-checking all information before submitting. “Simple errors, such as entering the wrong Social Security number or forgetting to sign the return, can delay your refund or even result in penalties,” he cautioned.
In addition to being diligent and organized with taxes, Silver also stressed the importance of planning ahead for next year. “Take a look at your current tax situation and see if there are any changes you can make to reduce your tax liability for the following year,” he advised. “For example, increasing your retirement contributions can lower your taxable income.”
Lastly, Silver reminded viewers that the April 15 deadline is not set in stone and can be extended if needed. “If you are unable to file by the deadline, make sure to request an extension,” he said. “But keep in mind that an extension only gives you more time to file, not to pay any taxes owed.”
In conclusion, filing taxes may seem like a daunting task, but with the right preparation and knowledge, it can be a smooth and stress-free process. As Silver stated, “Being organized and proactive is key when it comes to filing taxes. And remember, it’s never too early to start thinking about next year’s taxes.” So take a deep breath, gather those documents, and use the expert tips provided by Caleb Silver to tackle your taxes with confidence.