| People are usually surprised when I tell them that | | | | all out, and about how much money you should be |
| copies of past tax returns can help them get a loan or | | | | getting back. They also work as a great place to |
| reduce their bills, but they're even more surprised to | | | | recheck your math--for example, using your earning |
| know that those same past tax returns can help you | | | | last year as a gauge for the amount owed this year. |
| file your taxes this year? | | | | - Copies of past tax returns help you submit your |
| It's true--and in some surprising ways! Here's just three | | | | current ones. For a lot of e-filing software, you have to |
| ways that copies of your past tax returns make that | | | | verify that you are who you say you are. This is great |
| stressful filing process that much easier: | | | | because it makes it harder for people to steal your |
| - Receive more deductibles and credits. Copies of | | | | identity. But it also makes it harder for you to prove |
| your past tax returns are a record of how much | | | | you are who you are! It's a hassle when you don't |
| you've changed in a year. Are you living somewhere | | | | remember the answers to the questions, but because |
| else? Making more money? Less? Why? The | | | | it's tax-related, the questions the companies (or the |
| answers to all these questions can help you receive | | | | IRS) are asking you can be found on those old returns. |
| more deductibles and owe less money to the | | | | So keeping copies of past tax returns |
| government. Through the years, they can also be a | | | | nearby--especially when you're ready to send it all in--is |
| good record and reminder of how much you've grown | | | | a great way to make something time consuming go |
| in business--which helps you do things like better price | | | | that much faster. Copies of past tax returns are some |
| your services or gain new clients. | | | | of the handiest financial documents you can have. |
| - Makes it easier to do the forms. Let's face it: tax | | | | They help you save money on loans, keep track of |
| forms are a hassle. They're long and complicated and | | | | what you've been doing, even get you larger refunds. |
| it's easy to get lost in all the options--especially if you're | | | | This is why we recommend that you hang onto your |
| a novice. Using an online tax service is one way to | | | | old returns for at least three years. But if you're filing |
| ease the process, but referring to copies of your past | | | | electronically, you can get PDFs of those |
| tax returns is another way. If not a lot has changed for | | | | returns--which means there's no reason not to hang |
| you this year, you can use the old form as a guide for | | | | onto them for a good long time! |
| what you qualified for, where you're supposed to fill it | | | | |