It’s tax season, and whether you’re a professional or an amateur sports bettor, you likely have some questions about how to file your taxes right. If you’re someone who enjoys wagering on sports, this year might be a bit more complicated than usual because of the new tax rules. Whether you’re filing your taxes paper, e-file, or use a professional tax preparation service, there are numerous ways to file your taxes on sports betting, and we’ve compiled a list of tips on how to make the process easier. So sit back and get ready to party because it’s tax season. Let’s get into it.
Make Sure You Have The Right Help
One of the biggest challenges for any individual or business is paying proper attention to all the details of the tax law and following the right procedures. It’s important to keep in mind that there are qualified professionals who can help you through this process. Hiring a professional tax preparer is an excellent idea because they will take care of all the tedious details so you can focus on what’s important to you. They will help you choose the right filing status based on your needs, and get you through any tax audits without stress. Plus, they will take care of all the paperwork so that you don’t have to during tax season.
Choose The Right Filing Status
Every individual or business must decide which tax filing status to utilize. There are several different tax situations that you might be in, so it’s important to understand the pros and cons of each option. Let’s examine some of the most popular ones and how they affect your tax bill.
Single
If you’re a single person who happens to be single, this is the perfect filing status for you. You won’t be heading off to college any time soon, and you don’t have any children to claim as dependents. You’re also not going to be filing any kind of a joint tax return with your spouse, so this is the only option left for you. You don’t need to worry about a single person in your family needing healthcare because it’s unlikely to happen. However, if you’re a married individual who plans on getting divorced, you might want to consider another option.
Head Of Household
Married individuals who file jointly usually qualify as the head of a household. This is, in essence, a combination of both of their filing statuses. Regardless of what kind of family you have, the Head of Household filing status usually results in a lower tax bill than either of the other two options. Even if you have dependents, you’re only responsible for paying taxes on the first $12,200 of your income, effectively halving your tax bill.
Married Filing Separately
Those who file jointly but separately pay taxes on only their separate income. This is a popular option among married couples who want to keep their marital status private. An untaxed marital status protects your assets from being attached in the event of a divorce. As a result, it’s a popular option among higher income earners who want to hide their income from the IRS. A lot of people who file separately also choose to keep their homes in a separate name because they don’t want the IRS to know about their income. As long as you report all your correct information, there’s no reason to worry about getting audited. Although this filing status requires more work, it’s still the most popular one because so many people qualify for it.
Dependent
If you have children either biologically or legally, you might be able to claim them as dependents. You can claim both your wife and your kids as dependents because they’re jointly responsible for supporting you. While you don’t have to pay any taxes on the income your wife brings in, you will be responsible for paying taxes on any income your kids make. So, if you’re a single parent, it’s imperative that you make the right choices regarding childcare subsidies and tax preparation to ensure you don’t end up owing any money to the government.
File Your Taxes Using Paper
In addition to choosing the right filing status, you need to decide whether or not to use paper to file your taxes. Using paper to file your taxes is an excellent idea because it prevents the data from being lost in the event of a computer crash. Plus, you have the ability to go back and review the information if necessary. While using paper to file your taxes isn’t terribly difficult, it can be a very time consuming process, especially if you have a lot of financial paperwork and forms to fill out. For these reasons, using paper to file your taxes is generally only done when necessary, and most people opt to file their taxes electronically.