If you ask the majority of tax-filing Americans what the most stressful time of year is, you’d find the two answers to be almost unanimously Christmas and tax season. While you are on your own with how you handle your seasonal shopping, there’s help for you when it comes time to get ready to file your taxes!
Here are five steps you can take to make your tax preparation simple and easy every year.
5 Steps to Prepare for Filing Your Taxes
Find a knowledgeable tax preparer. Hiring someone to do your taxes for you is not a weakness or a waste of money. It’s a smart business move. In fact, according to the IRS, about 90% of tax filers use a tax preparation company or individual to file their taxes for them.
This is mostly due to the everchanging complexity of tax law. Since it changes frequently, it’s best to leave your taxes in the hands of the experts who are trained in keeping up with all of the adjustments so you don’t make costly mistakes.
Find out what forms you need and have them ready. By the end of January, you should know what you need and have compiled a folder of completed forms that your tax preparer will need to be able to file your taxes for you.
If this seems overwhelming to you, or you aren’t sure where to begin, you can schedule an appointment with a knowledgeable tax expert by going to sites like GudorfTaxGroup.com now to avoid last minute snafus that hold up your timely filing.
Compile your receipts and donations records. This should be something you are doing throughout the year if you are itemizing your personal deductions. Many people simply claim the standard deduction, but small businesses and people in certain situations are better off with personalized deductions.
However, this requires organization and early planning, as you need to keep all of your receipts in a system that works for you and that you can quickly get your hands on by the end of January. If you aren’t sure what qualifies as a tax deduction, talk to your tax preparer as soon as you can.
Have your personal information ready. Many tax preparers will need a voided check, a copy of your license, and possibly other proof of your identity or citizenship. Check with your preparer ahead of time to ensure you have everything you will need to prove your identity and pay your taxes or receive your refund. You should also have a copy of your last year’s tax return to take with you if you are using a new preparer.
Schedule an appointment in advance. Tax season is the busiest season for preparers, of course! Don’t wait until the last minute to try to schedule an appointment and expect to be seen quickly. If you procrastinate in scheduling your meeting and you are missing important documentation, it could mean being late in filing your taxes and become a costly mistake that could have easily been avoided.
Make it Easy on Yourself This Tax Season: Plan Ahead!
When it comes to filing your taxes, you should be preparing all year so that tax season is not a chaotic, stressful time. With these simple five steps, you can make every year’s tax time just another checkmark on your to-do list!
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