Mashable's latest #BizChats Twitter chat shared tips on how to have have a stress-free tax season.
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Several finance experts shared their advice on taxes and tax filing, hosted by @MashBusiness, including Jean Chatzky, financial editor for NBC Today; Daily Worth, a financial media company for women; Wise Bread, a personal finance community for financial independence; Kay Bell, author and personal finance tax expert; Lisa Lewis, CPA, tax expert and TurboTax blog editor; and Jeff Haywood, CPA and tax expert.
Over the course of an hour, @MashBusiness covered an array of questions, ranging from how to prepare for tax season to tax breaks and how people can use them to their advantage.
Check out highlights from the chat in the Storify, below:
[View the story "#BizChats: Make your life easier this tax season" on Storify]#BizChats: Make your life easier this tax seasonMashable hosted a #BizChats Twitter chat to share the best answers to the most tedious questions surrounding tax filing. Storified by Mashable· Wed, Mar 25 2015 20:23:16
No matter how experienced you are, taking time to file your taxes is never a fun venture. The longer you put it off, the more stressed you become. Filing your taxes (especially if you're inexperienced) can be compared to learning a new language from scratch, but we want to help decrypt your tax tumult once and for all.
@mashbusiness and several finance experts participated in a #BizChats Twitter chat to discuss the best ways to take control of your taxes this year. Welcome to our #BizChats Twitter chat! Today we'll be discussing how to have a stress-free tax season. Please introduce yourselves!Mashable BusinessA warm welcome to our career experts: @DailyWorth @JeanChatzky, @jeffhaywoodCPA, @taxtweet, @ttaxlisa, and @wisebread! #BizChatsMashable Business#BizChat’s tip: Be sure to number your answers according to the question you're answering. (ie., Q1.-->A1., Q2. --> A2., Q3. --> A3.)Mashable BusinessQuestion 1:Q1. How do you start preparing for tax season? #BizChatsMashable BusinessQ1: Gather forms & receipts in one place before going online to do your taxes. #bizchatsLisa LewisQ1 Don't forget things you did last year can be worth valuable deductions! #BizChatsLisa LewisA1 I send my clients a Questionnaire/Organizer to help them get all the needed info & documents together. #BizChatsJeff Haywood, CPAA1) By keeping all tax relevant paperwork/receipts year in one location so to access them easily when filing! #bizchatsWise BreadA1: Make sure that you’ve received a W-2 from your employer and/or any 1099s for freelance work. Also, last year’s return. #BizChatsDailyWorthA1: Get your financial ducks in a row. Have all paperwork on one desktop, either online or off. #BizChatsJean ChatzkyA1) @csmonitor has a great article on how to get organized for tax season: http://t.co/7giKg6LIMZ #bizchatsWise BreadDeep breaths! Then decide how to file - yourself w/software, hire a tax pro, franchise service, Free File #Q1 #BizChatsKay BellRegardless of filing method, make sure you have all your documents - reporting statements such as W-2s, 1099s #BizChats #Q1Kay Bell@mashbusiness A1: I would prepare by collecting all relevant receipts and tax slips before preparing the return. #BizChatsWayne ChanA1 I wait for all the forms to come in. They go in a folder on my desk. We make a list to make sure we've got everything. #bizchatsAlissa M. TrumbullA1 Keep your forms in one secure place. It saves you precious time and stress #bizchatsJadeA1. Create a checklist of all docs. you'll need before you start to file your return. Here are some tips: http://t.co/9EltU6h1zm #BizChatsOnePriceTaxesA1. If you're claiming dependents, it's a good idea to get all of their personal information ahead of time! SSN's, addresses, etc. #BizChatsOnePriceTaxesQuestion 2:Q2. What kind of documents should you have available as you file your taxes? #BizChatsMashable BusinessA2 Docs you need are: W-2s, 1099s, K-1s, and stock option information. Receipts for deductibles, charitable contributions, etc. #BizChatsJean ChatzkyA2) Don't miss our article on documents you should gather before doing your taxes! http://t.co/c51jWRoSr1 #bizchatsWise BreadA2) @mainstr has a list of things you (or your tax pro) will need when filing as well: http://t.co/vgFGrxTp7J #bizchatsWise BreadA2: Wage statements, proof of charity donations, moving expenses, equipment for work, etc. Checklist here http://t.co/Oso5sPkqAj #BizChatsDailyWorthA2 If got health insurance via marketplace, look for new this year 1095-A #BizChatsKay BellQ2: Important forms like W-2s, 1099s, and receipts. Here's more info
http://t.co/PeRgQ50Co9 #bizchatsLisa LewisA2 Records of all expenses in addition to official tax statements: check registers or credit card statements and receipts #BizChatKay Bell@mashbusiness W-2s, 1099s, investment gains, all business receipts, mortgage interest, medical payments, just to name a few. #BizChatsDebbi KingA2. Don't forget to include statements of deductible interest payments - like your 1098s - and student loan interest payments. #BizChatsOnePriceTaxesA2 All tax documents you receive and all financial reports needed for your business & rental properties. #BizChatsJeff Haywood, CPAA2 In some cases a summary of bus. mileage, a log of travel dates, expenses related to a home office, & foreign accounts info. #BizChatsJeff Haywood, CPAQuestion 3:Q3. Is it worth it to have a personal accountant or service to do your taxes for you? Why or why not? #BizChatsMashable BusinessA3: DIY & save $ if you have a straightforward return: don’t freelance, don’t have childcare expenses. http://t.co/xDX8qWfPwv #BizChatsDailyWorthA3) Personally, I use tax preparation software. But I think using an accountant would be easier! #bizchatsWise BreadA3 - Has your personal/tax life changed dramatically? Tax pro could help maneuver through the changes #BizChatsKay BellA3 If it’s straightforward, tax software is fine. If it’s more complicated, hiring a professional can help you save money. #BizChatsJean ChatzkyA3 Having a CPA prepare your returns is about competence, peace of mind, and a wise use of your time. #BizChatsJeff Haywood, CPAQ3: You would be surprised at how easy it is to do taxes yourself. Plus no appt necessary! #bizchatsLisa LewisQ3 you may be able to get your questions answered by tax professionals while doing you own taxes. Empowerment but never alone #BizChatsLisa LewisA3 There's always a way to do it yourself. Use Tax Software & learn. Such a valuable skill #bizchatsJadeA3 I use software, but always do a down and dirty on paper before going to computer #CreditChatKay BellA3 - Reduce your personal frustration level. If find #tax DIY not worth hassle, then hire #tax help #BizChatsKay Bell@mashbusiness A3: I would say it depends on the kind of work and the situation when getting taxes filed. #BizChatsWayne ChanA3 Successful business owners want the expertise of a CPA and someone who can help them with tax & financial concerns year round. #BizChatsJeff Haywood, CPAA3 If you hire a tax professional - the IRS has a directory of tax return preparers. http://t.co/iHn6k1JX0z #BizChatsUSMBDAA3 - Reduce your personal frustration level. If find #tax DIY not worth hassle, then hire #tax help #BizChatsKay Bell@mashbusiness A3 I use software...for now. But the moment I feel overwhelmed, I'm going straight to a CPA who has been referred! #bizchatsSameera HasanConfused by Obamacare, other tax law changes? Consider a pro #BizChatsKay BellA3. The current US Income Tax Code is over 73,000 pages long. A pro tax service makes the process of filing a tax return simple! #BizChatsOnePriceTaxesA3 Most tax pros probably booked by now. File an extension then hire one post-April 15 #BizChatsKay BellA3 - Reduce your personal frustration level. If find #tax DIY not worth hassle, then hire #tax help #BizChatsKay BellQuestion 4:Q4. How do you know what or who to claim on your taxes? #BizChatsMashable BusinessA4) Here's some information on the child and dependent tax credit: http://t.co/zQ8ua1xwRq #bizchatsWise BreadA4 This is what tax software and pros are for -- holding your hand and helping you answer the questions in English. #BizChatsJean ChatzkyA4: You claim dependents: kids you support (under 19 or a full-time student up to 24) and/or relatives who live with you #BizChatsDailyWorthA4 Often it is simply a matter of knowing what is allowed. The IRS can be a good resource. #BizChatsJeff Haywood, CPAA4 A 'relative' could even be an unrelated person if you provide most of support & [s]he lives year-round with you #BizChatsKay BellA4. Here's a handy guide to answer the question, "Who Can I Claim As a Dependent?" - http://t.co/kuZHZGM6I9 #BizChatsOnePriceTaxesQ4: Tax software like @turbotax asks simple questions about your life, & gives you deductions & credits you're eligible for. #bizchatsLisa LewisQ4 May be able to claim your kids and relatives. Don't forget your boyfriend/girlfriend who lived with you all year
http://t.co/ovLLZYYdHeLisa LewisA4 Baby boomer experience: Elderly parents also might be tax dependents http://t.co/9gGkHJPw5A #BizChatsKay BellA4 Having an in depth conversation with a knowledgeable CPA can be invaluable. He can help you minimize your taxes. #BizChatsJeff Haywood, CPAA4 The value is in the conversation. As a CPA talks to you about what you are doing he will note things you do on your taxes #BizchatsJeff Haywood, CPAA4. Keep in mind that you can never claim your spouse as a dependent. #BizChatsOnePriceTaxesA4) Also, here's some information on business expenses you might be able to deduct: http://t.co/HKs0yV92du #bizchatsWise BreadQuestion 5:Q5. What are the best tools or products to use when filing your taxes? #BizChatsMashable BusinessA5 Anyone who earns 60k or less can free file through http://t.co/vADxua8Kl1. IRS hooks you up with tax software for free. #BizChatsJean ChatzkyA5) The 2015 Withholding Calculator from the @IRStaxpros is a good one: http://t.co/CuLiQNsyBs #bizchatsWise BreadA5: The internet! Research what other people have written off and claimed -- esp if you’re a freelancer. #BizChatsDailyWorthA5 The first tool you must have is knowledge. http://t.co/7nIHxbNS4N is a great resource. Also, tax software can be a big help. #BizChatsJeff Haywood, CPAA5 Tax Software can help you save some time and help you with deductions and who you can claim. . #BizChatsJeff Haywood, CPAA5 you might be eligible for EITC. http://t.co/PrWX7acCz4 online program will help you determine whether you qualify. #BizChatsKay BellQ5: Going online or using your mobile device are fast, convenient,
& accurate ways to file your taxes. No waiting necessary. #bizchatsLisa LewisA5 @turbotax obviously! Seriously, though, meets my needs every year. #bizchatsAlissa M. TrumbullA5 In addition to pulling together tax docs for your preparer, make a list of tax questions you want answered/cleared up #BizChatsKay BellA5 During the year you can get great tax info from @taxtweet @taxgirl and of course @jeffhaywoodCPA #BizchatsJeff Haywood, CPAA5.) Online tax preparation software is easy-to-use and low-cost solution. #BizChatsOnePriceTaxesA5. Anything that will help you be organized is your most helpful tool! I like http://t.co/Al71dZZnL3 @mashbusiness #bizchatsSameera HasanQuestion 6:Q6. What should people know about tax breaks and how can one use them to their advantage? #BizChatsMashable BusinessA5. Anything that will help you be organized is your most helpful tool! I like http://t.co/Al71dZZnL3 @mashbusiness #bizchatsSameera HasanQ6: There are tax breaks for things you do
in your everyday life that can boost your refund. More info:
http://t.co/qYLtukzlED #bizchatsLisa LewisA6 You may get tax breaks for being in the reserves, a health savings account, student loan interest & college costs... #BizchatsJeff Haywood, CPAA6) @kiplinger has a list of tax deductions that are often overlooked: http://t.co/UbhdaLpojJ #bizchatsWise BreadA6: If you work from home, you can write off your home office + office supplies + computer and save $$. Check with an accountant. #BizChatsDailyWorthA6 Try not to get overwhelmed w/all of deductions out there. Narrow in on life changes in past yr & focus on ones related to you #BizChatsJean ChatzkyA6. Most people know about the more common tax breaks. Here are a few that are usually missed: http://t.co/nWavdDj97F #BizChatsOnePriceTaxesA6. Don't forget to deduct charitable donations, and some expenses related to job hunting and/or relocating for work! #BizChatsOnePriceTaxesA6 Look at long 1040; it gives you a good idea of the many tax saving options out there #BizChatsKay BellA6 Check out bottom of 1040 for above-the-line deductions; no itemizing required for these http://t.co/oxxeP9XXPy #BizChatsKay BellA6 People should know, depending on your situation you may be eligible for various tax breaks. #BizChats Facts and CircumstancesJeff Haywood, CPAA6 You may get tax breaks for dependents, your age, adoption, health insurance, retirement savings, moving, job search... #BizchatsJeff Haywood, CPAA6 You may get tax breaks for foreign taxes paid, foreign earned income, dependent care expenses, having children...etc #BizchatsJeff Haywood, CPAA6 some more on overlooked tax breaks at http://t.co/j3dV2lWbCl #BizChatsKay BellQ6 Don't forget your donations to charity. You can vlaue and track them here https://t.co/8J07MY26nj #BizChatsLisa Lewis@mashbusiness A6: I always tell people to think about any large donations they made that year, it's a great way to save. #bizchatsFrank BatesQuestion 7:A7) @MoneyTalksNews has a list of some mistakes people make! http://t.co/2uWhkgOw5W #bizchatsWise BreadA7 Overclaiming donations. #BizChatsAlissa M. TrumbullA7 Bad math always tops IRS filing mistakes list #BizChatsKay BellQ7: Hands down: not claiming enough write-offs. Educate yourself about tax deductibles so that you can save $. #BizChatsDailyWorthA7 Believe it or not, it’s usually the simple stuff. Wrong/missing SSN & names, filing status errors & math mishaps. #BizChatsJean ChatzkyQ7: Don't wait until the last minute to file! If you need to gather additional docs, you'll have time if you start early. #BizChatsLisa LewisA7 A common mistake is not reporting all your income. It will often trigger a nasty IRS letter. #BizchatsJeff Haywood, CPAA7 Another is missing deductions or credits. For businesses there are several general business credits you may be able to take #BizchatsJeff Haywood, CPAA7 Examples: there are special deductions available for people in the transportation industry and people living outside the US #BizchatsJeff Haywood, CPAA7 Finally, not filing the information reports on your foreign accounts can be a very costly mistake. #BizchatsJeff Haywood, CPAA7. Filing mistakes: not signing a paper return and not filing at all or relying on the #IRS substitute for return! @mashbusiness #BizChatsSameera HasanA7 Math mistakes include addition/subtraction errors + transposing entries; double check $ entries as well as SocSec numbers #BizChatsKay BellA7. Take your time when filing! If you need more time, don't be afraid to file a tax extension. Here's how: http://t.co/Z7NdxQx97K #BizChatsOnePriceTaxes@mashbusiness A7: Sometimes a wrong number or wrong deduction could be inputted by mistake and not be seen until completed. #BizChatsWayne ChanQuestion 8:Q8. What final tips do you have for a stress-free tax season? #BizChatsMashable BusinessA8 ID theft is a big issue on state tax returns. You won’t know if you’re a victim until you file & filing ASAP is the thing to do #BizChatsJean ChatzkyA8: Be thoughtful about how you plan to spend your tax return. Think emergency fund, savings, paying off debts. #BizChatsDailyWorthA8 Start as soon as possible and get organized. Also, talk to your CPA about what you need. #BizchatsJeff Haywood, CPAA8 Get your information to your CPA well before the due date. If close to the due date file an extension so you are not rushed. #BizchatsJeff Haywood, CPAA8 Remember though the extension is only for filing not for the tax owed. You may also need make a tax payment . #BizchatsJeff Haywood, CPAA8 File an extension Form 8868 to get until Oct 15 to file; can do it online #BizChatsKay BellA8) Stay organized throughout the year so that you aren't overwhelmed when it's time to file! Also, file sooner rather than later. #bizchatsWise BreadClosing Comments: That was fun! Thanks for having me @MashBusiness & happy filing everyone! #BizChatsJean ChatzkyThanks for having us @mashbusiness! Hope everyone has a stress-free tax season! #BizChatsDailyWorth@mashbusiness Thanks for hosting! Great chat! #bizchatsWise Bread@mashbusiness Thanks for inviting me. #BizchatsJeff Haywood, CPAGreat help guys! Thank you :) #bizchatsJadeThat went by quickly! Thanks for having us @mashbusiness & @mashable at #BizChats. It was wonderful to talk with all of you today!Lisa Lewis