14 Jan 3 Whys To Your Filing Tax Returns Timely Every Year
Most people do not look forward to the tax-filing season. Well and except, the thousands of professionals such as certified public accountants (CPAs) who enjoy providing you with tax solutions such as planning and preparation. Note the below reasons why filing your income tax return timely is a best practice:
Applying or renewing healthcare coverage in the Marketplace. Healthcare is an important service to a lot of people. Be mindful that information on your Form 1040, U.S. Individual Income Tax Return, is needed to apply for or renew your healthcare coverage under the Affordable Healthcare Act (also known as Obama Care). If you are not required to file a return according to the Internal Revenue Code, you need to file (even if you do not have a tax liability) a return to keep your healthcare coverage in the Marketplace.
Mitigating Identify Theft. Sometimes you have to beat the rush can be applied to outwitting bad actors or thieves. Be the first to file a return under your social security number with the Internal Revenue Service (bureau of the Department of the United States Treasury). Many state revenue departments will send you an email if a return is submitted under your social security number. Review the websites of those taxing authorities to become familiar with their identify theft programs.
Paying Only Taxes Owed. Do you know your Taxpayer Bill of Rights? By reading this blog, you know one of them. Per the IRS, “taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.” Your homework is to weigh the benefits and costs of investing time (e.g., research) or partnering with a professional (e.g., CPA) to meet your self-assessment tax compliance requirements.
A lot of people feel better when they have met their self-assessment tax compliance requirements. Do you? Be committed to learning more about taxation. Figure out a why or two of your own to progress towards work-life balance. Best wishes!
Pierce, CPA & Advisors’ website, social media posts including blogs are meant to be used as informational guides and shall not be construed as providing any legal or accounting advice. A best practice is to consult with professionals such as CPAs, tax attorneys, etc. about your tax situation.