As the provider of best-selling PDF financial file converters on the market, MoneyThumb wants to make sure that our blog readers who may be having issues with handling taxes get the help you need. To assist you, we have created a list of what we find to be the biggest problems taxpayers run into. Each of the 5 problems listed below come with a suggested MoneyThumb tool that will remedy the tax issue:
1. Disorganized Tax Files
Tax season shows up once a year, but tax preparation is really an everyday task. Keeping your financial files organized throughout the year makes a HUGE difference when it’s time to fill out tax forms. You might be old school, using paper files, envelopes full of receipts, and handwritten signatures. Or, you might like staying on the cutting edge by using finance apps, text alerts, and saving tax info to cloud storage.
Most people fall somewhere in the middle, but the majority of taxpayers use online banking and home finance software to keep everything in order. One of the most popular home finance software used by taxpayers is Quicken.
PDF2QFX CONVERT from MoneyThumb makes it easy to get your PDF financial statements into Quicken’s QFX format, so you can have all of your transactions properly recorded in one place.
2. No Digital Financial Records
If you prefer to use paper statements and receipts, it is crucial to make sure they are entered correctly, in a timely manner. Where and how you enter them is up to you; some taxpayers input transactions into a program like QuickBooks, and others note them by hand in their check register. Many create their own spreadsheet – either on paper or on the computer. Ideally, you should be keeping track of these files on a regular basis, but you can input them all during tax season if you give yourself enough time.
It’s also worth noting that keeping electronic records of your documents can be more secure and easier to manage than paper hard copies. If you’ve struggled with miscalculations, lost documents, or overflowing file cabinets, you might want to add some new tools into your accounting toolbox. Having everything sorted and stored makes the process of filing taxes much easier on you and your tax preparer.
QXF2CSV CONVERT converts QXF documents into CSV format, which can be uploaded into Microsoft Excel or another spreadsheet program.
3. Using a Tax Preparer-Or Not
When your taxes are fairly straightforward, it can be very easy to file at home. Depending on your state, you may be able to file some or all of your taxes online for free. Using the state and federal government websites means a much lower cost than using a third party type of tax software. If you have one job, for example, rent your home, and have no spouse or children, it might make sense to file on your own.
Generally speaking, most people consider switching to a tax preparer when their taxes get more complicated than they know how to handle. So, if you’ve started making substantial donations to charity, recently got married, or own your own business, it may benefit you more to have someone assist you.
Sometimes just one type of file converter isn’t enough to get the job done. We’ve put together a special 2QBO Pro CONVERT software package to help with this very problem. Historical bank transactions, credit card statements, personal Excel files, Quicken files, and more can all be converted into QBO QuickBooks format. This is a great option for business owners and professional QuickBooks users.
4. Missing Deductions
Tax preparers are often very helpful in this particular area of tax filing – finding deductions. These expenses play a big role in how much money you have to pay, or how much of a refund you get, so it’s imperative to claim all of your proper deductions. It’s equally important, of course, that you don’t claim anything that you shouldn’t. This can get very confusing, very quickly, if you’re not familiar with the tax laws and procedures for deductions.
Programs like Quicken have missing deduction finders and built-in categorization that makes it quick and easy to spot every applicable deduction. The software can recognize charitable donations, for example, and note them accordingly so you don’t miss out. This is especially important for freelance or self-employed workers that don’t have regular paychecks for taxes to be deducted from throughout the year.
If you wanted to import files into older, expired versions of Quicken, or into other personal finance software, you might need to use QIF files instead. We have converters that do both – QXF2QIF CONVERT and QIF2QFX CONVERT are solutions for dealing with QIF and QFX exchange issues.
As you can see, MoneyThumb has a solution to each of the 4 major personal tax issues that taxpayers run into. We hope this blog post has helped you realize how helpful our tools can be, and we'd really appreciate it if you shared this post on your social media page so that all of your peers can take advantage of the information provided.