Tax Time – How to get ready for the upcoming tax season
There are two things in life that are a guarantee, those are death and taxes. We will all die at some point and we all have to pay taxes. However, keeping up with your taxes needs throughout the year can make tax time a much simpler process. This is especially true if you own and run any kind of business, even if it is on the side. But, we would like to give you some tips on what to do to prepare for the tax season.
Things to do at home for Tax time
Organize your files. It will be easier for you and your accountant if you are organized. Staying organized throughout the year helps as well. You will need to have all income reported even if it is not on a W2 or 1099. However, do not lose your W2 or 1099 as those are needed as well. Get all the forms that you used last year to do it again this year. There may be lots of forms to complete so be sure that you gather them all. Maybe make copies to start a file for the next year. This will give you a jump start when you have to do this again.
Tell Us of Changes that have happened in the past year that may affect your taxes. These can be things such as buying an expensive vehicle, getting married, buying a home or second home or getting a divorce. Additional children also play a part in your taxes.
Keep all those forms that come in the mail in Jan. and Feb. These are important tax forms and typically will say just that on the outside so you do not accidentally throw them away.
Choose a preparer
There are a few ways to find a preparer. The best way is to look around online for tax preparation. After all, there are reviews left everywhere and people are, for the most part, honest in their reviews. Another way to find a good preparer is to ask around among friends or on social media. Remember, getting the right preparer can be golden. So, be sure to ask questions and listen to what they have to say. And, find out what their fee structure is. Some firms want to charge you a % of your return, while others want to charge you for the complexity of the return.
Schedule an Appointment
Once you have found a tax preparer be sure to schedule an appointment early. The good ones fill up and you do not want to wait until last minute in case you have missed something that you will have to dig up. Ensure that you leave yourself time to do just that. If you are expecting a refund the quicker you file the faster you will get your money. So, file early and enjoy life sooner.
Remember to take everything you need for your appointment. All the above files we have mentioned as well as receipts, charitable documentation, personal information, and banking information for a way to send the refund.