Did you know that obtaining copies of past income taxes can save you up to 25% on things like mortgages, small business loans, and credit cards? It’s true! Rates are set by these companies based off a complicated algorithm which looks at a variety of factors, including past income. And what’s one of the best ways to prove past income? Why, those old tax returns!
It’s true! And here are other ways copies of past income taxes can help you out:
- As an employment record. Whether you’ve work for several companies over the last few years or do freelance work, it can sometimes be hard to keep track of where you were working when. Copies of past income taxes let you know not only who you were working for, but also when, where, and how much they were paying you. This is invaluable information for deciding what rates to charge, looking at a new job offer, or even just polishing up your resume.
- Applying for a mortgage. A mortgage is one of the biggest expenses most people will have in a lifetime–which is why it’s so important to make sure you don’t get over-charged. Bad credit–and debt caused by bad credit–is one of the leading reasons people don’t buy their own home or get stopped at the bank. Fortunately, copies of past income taxes help prove that you’re not a credit risk. They show that you’ve received a steady paycheck, through good times and bad, and can even show that you manage to successful pay off debt. They may not speak, but past tax returns can make the best character references.
- If you ever get audited. Getting audited is no fun, but it can happen, especially if you’re trying to tackle paying off back taxes. Fortunately, there’s no reason the panic. Most people who get audited aren’t just people who made simple errors, like doing the wrong form or dropping a decimal point. These mistakes are bad, but having copies of past income taxes can help verify your credibility to the IRS–as well as be there to check your numbers against theirs! This is why keeping copies of past incomes taxes for up to five years is recommended.
When you get right down to it, there’s all sorts of ways that copies of past income taxes are handy to have around. Even if you file your taxes online, you can still save a copy of the filing. That way, you get all the information and savings, and none of the clutter.
Tags: Copies Of Past Income Taxes, copies of past tax returns, copies of past taxes, savings advice
