As ready as you think you are, one can never be prepared for the painstaking time of year we call –tax season. This article will hopefully give you a jumpstart on your preparations so you’re not stuck scrambling last minute to get everything in order. So you ask – what can you do to prepare yourself?
Are you self-employed? Are you collecting income from freelance work? Any expense s that you can tie to this income need to be recorded and tracked so you can write them off. If you work a traditional 9 to 5 gig, you don’t have to sweat about this.
Did your employer send you the documents you need to file your taxes already? Do you have the information for your retirement accounts? Investments? Every company is different when it comes to sending out tax documents. You may want to contact the human resources department to inquire when these documents will be available and ensure they have your correct address on file.
This is the challenge that frustrates most people. It is hard to keep track of your documents throughout the year and have them centralized in one place. You need to be always mindful about when you receive a document that will be needed to file your taxes and have a place to put these documents. When you have everything in one place it makes it much easier to file your taxes when the time comes.
Every year new tax laws are put in place. That makes it hard for the average person to keep track of what incentives may be available to them and which ones they have benefited from before in the past which might not be in existence anymore. Keep up to date with any news on additional tax credits that have been announced.
Although it does fill you with a sense of accomplishment, you don’t have to file your taxes on your own. It is okay to ask for help. If you are not confident filing your taxes, I would recommend hiring a professional to assist you. You want to make sure you are doing everything right, the last thing you want to do is miss out on a credit or have the government come after you for money owning.
Tax season is stressful enough as is; take some of the stress away and have your documents ready to file when the time comes.