Filing tax returns every year is a legal requirement by the state and the constitution. It is absolutely mandatory for every adult to file them each year whether or not they were employed or in university or on a year abroad. Sometimes, you may fail to file your taxes on time and it is possible to defer them and file them later in the same year or in the next tax year while filing your most current taxes. You may be wondering how to complete your taxes from prior years when you have not done them already. Here are two tips to help you prepare prior taxes easily and at a low cost.
Option 1 – Contact an experienced professional
If you usually go to see a professional accountant or a company to help you complete your taxes then you should first of all inquire with them about the possibility of filing your prior years taxes with them. This is the best way to file your taxes from prior years. Most accountants or organizations that handle tax returns have a process in place to process older taxes. Usually, it can be done at the same time you are filing your current taxes and sometimes depending on how complicated it is you may not need to pay a full fee for it. Keep in mind that those practices vary from one organization and accountant to another, however, the only way to find out the possibility and all the details is to inquire directly. That way you can also have the peace of mind that you are taken care of by a professional.
Option 2 – Use an older software
If you are one of the people who prefer to file their own taxes personally, then you should look at previous year’s software. As you can learn from Taxreturn247.com.au, most tax software allows access to the prior year’s software. This makes it much easier for you to file your returns and calculate your total refunds or payments. The cost associated with the previous year’s filing would be the same as your current; a bonus is when the software is free. Keep in mind however, that most software only allow access to one year’s data.
To keep in mind
Remember that you cannot file your current year taxes unless you have already filed taxes for all the prior years and since it is a legal requirement you must do the previous years’ even you have missed out on it. Furthermore, if you do owe taxes interest would have accumulated over the past year so you should expect to be paying more than just the total taxes.
Filing taxes is cumbersome and complicated. For many it seems like a pointless chore, which is why people tend to put it away but it is required and everyone must do it. Check Oure featured post here to learn more on what you can do if you have accumulated unreported tax years.