If the thought of doing your taxes makes your stomach flip a little, you’re not alone. While filing taxes can certainly be stressful, it’s also something you can prepare for. We’re here to offer tips that will hopefully alleviate some (or all!) of the anxiety of tax season.
1. Decide How You’re Going to File Taxes
From filing yourself, to using an online program, to seeking professional help, when it comes to filing your taxes, there are more options than ever before. Knowing which method you’re going to use now will prepare you for the work that needs to be done later. Before you make your decision, research each option to see which will make your life easiest. If you need help navigating the complicating world of taxes, contact a World Finance Tax Specialist. Our tax preparation services are here to help you.
2. Research Possible Deductions
The standard tax deduction provided by the IRS provides optimal tax savings for many individuals and couples. You may want to consider itemizing if you meet certain conditions, including paying interest on your home mortgage, extensive medical expenses, charitable donations, and even your state and local tax bills. Research deductions now and save the relevant statements, receipts and documents for later.
3. Organize Tax Forms and Statements
At the beginning of each year, you’ll receive tax forms and income statements from your banks, employers or other financial institutions. If you can keep all of these tax documents in a single location, you’ll know where to access them later when it comes time to filing your return. Being as buttoned up and organized as possible will help make actually filing your taxes much easier.
4. Start Saving
If your employer doesn’t withhold part of your income for taxes, or you’re an independent contractor or self-employed, you’re likely to owe the government money when it comes time to file. The sooner you start putting money aside, the less stressful it will be to pay when the time comes.
5. Prepare an Extension If Necessary
Planning ahead for tax season will probably mean that your return will be filed well before the April 15th deadline this year, but unexpected events can cause your schedule to change. If something does happen, such as an illness or family emergency, get your extension filled out and sent in early so you don’t have to worry.
The sooner you start preparing, the more likely you are to be in a good position when tax season arrives. If you have questions on how to get the most out of your refund or minimize the amount of money you may owe, contact a World Finance Tax Specialist today.