While many Americans put off preparing their taxes until the last moment, this can contribute to the dread they feel as the tax season deadline approaches.
But you don’t need to panic as April 15 comes closer. Whether you have simple taxes or complicated ones that need an accountant to help you deal with them, there are two steps you can take to prepare yourself for tax time.
Organize Your Forms And Paperwork
Organizing all your paperwork and forms before tax time will help you skip the last minute scramble many people struggle with during tax season. Some of the key forms you will want to secure will depend on various circumstances.
Income Forms – You will want to gather all of your W-2 forms, 1040 Schedule C, 1099-MISC, and any other income forms you have received. You may need to be proactive about collecting your forms, as some companies do not mail forms anymore and simply make the information available through your employee access portal. If you are the business owner, then you will need to hold yourself accountable for acquiring the necessary paperwork.
Receipts – Depending on whether you want to file an itemized return, you will gather up your receipts for several things. Common qualifying deductions are:
- Mortgage interest payment
- Medical expenses
- Investment interest payments
- Charitable contributions
- Property taxes.
If you run a business, you will naturally need to gather more information. Some common business deductions are:
- Employee salary and wage information
- Contractor payments
- Business property rent or mortgage
- Utility payments
- Company supplies
- Business insurance.
Personal – Make sure you have all the personal information you need. It is easy to remember our own personal information, but depending on your circumstances, you may need to gather personal information that is not your own. Some information you may need to consider gathering:
- Dependants’ information (children, elderly parents, etc)
- Assets (Traditional IRA, house, stocks, etc)
- Federal benefits (SNAP, Social Security, FAFSA, etc)
Work With A Great Accountant
Preparing for the tax season on your own can be difficult even if all you are taking care of is your personal taxes. If you are a business owner, the difficulty level skyrockets. But you don’t have to manage your taxes on your own.
AA Tax and Accounting Services is ready to help steer you through the muddy waters of tax season. They have the knowledge and experience to ease you through tax time and alleviate the normal stress most people feel when doing their taxes. So do yourself a favor and work with them today to prepare you for the fast approaching tax season.