TAXES 101: When, Where, and How
Today, NOOK is excited to feature an exclusive guest post from Nicole Lapin, author of the personal finance book Rich Bitch: A Simple 12-Step Plan for Getting Your Financial Life Together…Finally.
April 15 is tax day, and if you’re like a lot of people, you may be a little stressed out trying to meet the deadline. Here are three common tax questions that are often misunderstood, answered once and for all to help you get most out of your taxes AND maintain your sanity.
1. “What’s the first day and the last day I can turn them in?”
The IRS began accepting individual returns on January 20th, and some people have already gotten their refunds back. With e-filing and direct deposit, it’s faster than ever to get from filing to accepting that big ol’ check—and you can track the whole process online with the “Where’s My Refund?” tool here. The last day you can turn in your taxes is October 15, 2015 — but only if you file an extension by April 15, 2015.
2. “Should I use tax preparation software like TurboTax or H&R Block?”
Yes, because you can. If you’re single and not claiming any dependents, filing your federal taxes (1040EZ) with is simple, and in most cases won’t cost a thing. You have to pay a small fee for filing your state taxes, but it’s well worth it, especially since free e-file is included (and you can pay the fee using part of your refund, so there’s literally no need for a credit card in sight.) With its step-by-step process and easy access to support you can’t get stuck. Bonus: Have you used the software before? Well, the system remembers all filings from years past, and since a lot of the information rolls over, just log in again this year and your taxes will be a snap.
3. “What do I need to get together?”
As your tax forms come in the mail or become accessible online, start saving them in a folder on your computer. (Unless you’ve opened a new bank account, retirement vehicle, or stock account you should have the same forms as last year. Using your prior year tax return serves as a great benchmark.) Cross-check or make a list (if new to filing) of all jobs, bank accounts, stocks traded/held (1099-INT forms), properties, and anything you make payments on (mortgage, student loans, extensive doctors bills, etc.).
Nicole Lapin is the author of Rich Bitch: A Simple 12-Step Plan for Getting Your Financial Life Together…Finally, in which she shares her experiences, mistakes and all, of getting her own finances in order. Nicole previously worked at CNN, where she was their youngest-ever anchor. She launched a production company in 2011 and is an anchor for Bloomberg TV. She appears as a personal finance expert on talk shows and entertainment shows and news programs. Follow her on Twitter at @NicoleLapin.
