Do you find yourself having to deal with the rush to get everything ready in time every tax season? Do you think that, maybe, this means you’re not getting the kind of tax returns that you probably should? Here, we’re going to look at how you can make sure you’re ready for tax season with a few tips.
Gather and organize your information ASAP
If you fail to get any of the information you need ahead of time, then it’s going to be a scramble to get the paperwork and personal information that you need when the deadline is coming. Make sure that you have your personal information all on hand, kept on file physically or digitally, such as birthdates and social security numbers for you and your dependents. Even basic accounting software can help you keep track of the financial information you will need to file taxes, too.
Think about the deductions you can make
If you’re able to get your paperwork and your financial details together ahead of time, then you can start thinking about actual strategies, rather than getting stuck doing the bare minimum to file your taxes. Think about the tax deductions you could be eligible for. For instance, if you work from home, you might be able to make a home office tax deduction.
Go over them with a pro
Rather than trying to spot the deductions and strategies that you can make, getting a pair of experienced eyes to help you is going to make a huge difference. There is a wide host of benefits that comes with individual tax planning services. This includes making sure that you’re ready for those year-end taxes, as well as providing estimations of quarterly tax payments and any help you might need with extensions or late filings.
Plan ahead for paying
One of the biggest causes of delinquent taxes is the failure to plan ahead and keep money aside for taxes that may potentially be owed. Setting up a savings account specifically to pay for your taxes, or maximizing your contributions and donations to charity now can help you manage the tax bill that might be coming your way. Don’t forget, if you’re worried about the chance of becoming delinquent, you can always file an extension for your return, too.
Double-check your employer info and ITIN
These are a couple of issues that can cause unnecessary hiccups when tax reason arrives. If you use an ITIN (individual taxpayer identification number), you should always double-check it to make sure that it hasn’t expired. Furthermore, check with your employer that they have the right personal details on file for you. Simply check with HR in advance of the deadline to make sure they’re up to date on your details, including your address.
Of course, there’s no one more likely to help you prepare for tax season than an accountant, so all of the tips above should take the second stage to what they recommend. However, they’re going to be applicable for the vast majority of individuals. Business owners need to make a whole other range of considerations.