As tax season approaches, millions of Americans should be preparing to file federal and state taxes if they haven’t already. The April deadline is probably not news if you file taxes annually, although specific tax credits you’re entitled to might be.
If you struggle with financial organization, using money services at a local business like Cash2Go Financial might make record-keeping easier. While tax filing may elicit more feelings of anxiety than excitement, knowing a few key things to expect can make the whole process a little easier.
Some Illinois Taxpayers Can File Directly Online
A new website is making it easier for certain taxpayers in Illinois who qualify to submit their tax forms online. Illinois is one of twenty-five states in which federal tax returns may be filed directly using the IRS Direct File website.
Employees with W-2 forms, Social Security recipients, and other groups can take advantage of this user-friendly platform. However, if you received tips in the form of cash or didn’t report alimony income last year, you may not be able to use the site.
New & Expanded Tax Credits
Find out if you qualify for federal or state tax credits. At the state level, there are several. Each has its own set of criteria, so be sure to do your research to see if you qualify. Three examples that can lower a person’s taxes are:
- Child Tax Credit: If you have young children, find out if you can take advantage of this recent change to Illinois tax law. Eligible families must have a child under the age of twelve to qualify. The amount to which you are entitled will depend on the number of children you have.
- Earned Income Tax Credit: Benefits will be provided in larger amounts to those who qualify. This tax credit was expanded primarily to help out lower income families so that they may owe less money this year or qualify for a bigger refund.
- Volunteer Emergency Worker Credit: If you are a part-time, unpaid firefighter in Illinois, you may be entitled to a tax credit of up to $500.
Others may apply to your federal income taxes, as well. Be sure you give yourself enough time to look into possible credits before completing your tax forms, and consider hiring an expert who can help you take advantage of any tax rules that apply to you.
Organize Your Income Documents
Organization is particularly important for those whose taxes are a little more complicated. For example, contractors who must keep track of work-related receipts and business owners with multiple properties should have their tax records and income documents stored in a system that makes them easy to access and file.
For many folks, this includes maintaining a record of cashed personal or business checks. Cash2Go Financial’s many money services are a helpful way to track money you are sending and receiving throughout the year.
Staying organized not only saves time and makes filing less stressful, but you might save money by discovering more deductible items. Maintaining clear records can also protect tax filers in case of an audit in the future.
Follow State Rules
Each state has its own tax codes, which is why filling can get a bit confusing. For details pertaining to your filing situation, visit the website for the Department of Revenue where you live. If you work in Illinois but live in a different state, you may still have to file taxes in this state, but it’s always best to double check.
Failing to Pay Will Catch Up to You
If you are considering not filing, whether because you are busy or are worried you may owe money to the government, it’s best to avoid that temptation. Failing to file may provide short-term relief, but the government has a way of catching up to people who owe it money. Having to pay past-due taxes or penalties on top of what you owe later will not be worth it.
File for an Extension if Necessary
It is best to file on time, and if you need help there are services available. Also, know that filing for an extension is an option. Many people use it so they will have an extra six months, or until October 15, to file their federal tax forms. However, for most filers who owe money, the April 15 payment deadline remains even if you file for an extension.
Use Money & Auto Services at Cash2Go Financial in Illinois
At Cash2Go Financial, we specialize in making money matters easier to deal with in any season. Whether for License Plate Renewals or to handle Title Transfers & Plates for your new vehicle, we have you covered.
Call us at 847-469-2274 for more information, or check out your nearest location today!