Whether you’ve just begun to work as a self-employed contractor in recent years or you simply want to get the most out of your tax filing, there are different steps that can make a world of difference in returns or payments. No one really loves the process of filing taxes, but there are countless benefits to doing so the right way.

We’ve put together 5 steps you can take to get the most out of your 2021 tax preparation, so you avoid making mistakes and possibly get a better return. Take a look:

1. Consider working with a professional to get the best input.

If this is your first time paying your taxes or you’ve done it before but it’s overwhelming every time, this could be the time to work with a professional who can help with by providing expertise and top-notch tax preparer software that ensures you’ll get the most out of your tax filing and possibly a bigger return. Making mistakes while filing taxes is common, but it can also be costly. So, when in doubt, choose a professional.

2. Think about filing separately from your spouse.

Sometimes filing separately from your spouse can be more beneficial when filing taxes, and other times it isn’t. Look into various deductions and credits you could get if filing with a spouse or alone. For example, the Child Tax Credit could get you more money if you file separately.

Yet, on the flip side, you could be missing out on some deductions available to married couples filing together. So, this is where it’s important to take your time to look into what options would be best for you and your family.

3. Timing is everything—even when paying your taxes.

From different payments to contributions, there are various factors to consider that have everything to do with timing. For example, you could get a medical expense deduction when you schedule the necessary treatment at the right time (typically the last part of the year). Or, as a self-employed individual, it may be wise to buy that new computer you needed for work before it’s time to pay taxes, so you can get  deductions related to your home office. There are a variety of things that should be done by the last quarter of the year that could positively impact your tax return.

4. Report all of your income.

If you’re someone who does contract work or has side hustles, don’t forget that if you fill out Form 1099, you need to report all of your income. This is where being organized can be very important to the outcome of your taxes.

Don’t let any extra 1099s get left behind and make sure everything is reported. Penalties are no joke and not reporting all of your income can result in a variety of consequences. If you only did a couple of side gigs, you may still want to check in with the people who hired you to see if they have a 1099 for you.

5. Meet deadlines.

You need to make sure to file your taxes and any payments by the stated due dates. There are penalties for not submitting your taxes on time. While you can get an extension in many cases, you will need to make sure you start on it as soon as possible to ensure you file the extension on time. Bear in mind that if you owe money and didn’t pay with your return, you may be subject to penalty fees, even with the extension.

In Conclusion

From a variety of deductions to tax credits, there are various ways you can benefit from filing your tax return in the most accurate way possible. While it takes time to get everything together and plan ahead, at the end of the day it’s worth it to get everything right. Avoiding mistakes can save you a lot of time and money, while getting all the possible deductions and credits can make you money.