Tax season is upon us, and that means you’ve likely found yourself gathering documents, organizing files, and potentially coming to terms with some long-term procrastination. While there’s no skirting around the detail that goes into preparing your taxes, there are a few steps you can take to minimize some of the stress of filing your return.
1. Get your documents organized early
If you aren’t self-employed, you’ve probably gotten your fair share of documents over the past month or so. Losing forms means tedious bureaucratic hoops down the road, so play it safe and put all your documents in a single folder. This includes a W-2 from your employer, a 1099 for any other income you may have earned, bank and other financial statements, and receipts for things like medical bills and charitable donations.
2. Gather all necessary ID numbers
All taxpayers are tracked by the IRS through their social security numbers, so if you’re planning on sending your data off to an accountant, be sure to include your social security number among the information you send. Other important information to include are the ID numbers for your spouse if you are filing jointly, and your children or elderly parents if you are claiming them as dependents.
3. Get informed on local tax laws and regulations
Once you’ve gathered all your important paperwork, it’s always good practice to meet with a professional accountant to talk about changes or recent developments in tax laws that can have an effect on your return. Having this discussion early in the season is key to avoiding unpleasant surprises when your taxes are due. A consultation with an accountant is also a great way to reconfigure your tax strategy, and can improve your process for preparing taxes for years to come.
4. Consult with an accountant
Tackling your taxes on your own can be overwhelming, and with all your other commitments, it’s not always easy to keep up with your options when it comes to deductions and refunds. Fortunately, we do this for a living, and we can help ease the burden of staying informed. We’ll help you maximize your returns or minimize the amount you owe, and we’ll explain in manageable terms how to improve your internal finances moving forward.
Don’t have time to manage your taxes this season? Or think your business could benefit from a financial planning consultation? We’d love to help!