Tax season is officially here—and a little preparation now can save you time, stress, and potential headaches later. Whether you meet with a tax professional or prepare your taxes yourself, proper planning helps the processes go more smoothly and may reduce the risk of costly errors. Check out the tips below and prepare to tackle this tax season with confidence.
Tax Prep Tip #1: Gather All of Your Forms
In January, you likely started to receive the forms you need to properly complete your tax return. If you are expecting a large refund, you will want to make a list so you don’t forget anything that could affect it. Once you receive your documents, review them carefully for accuracy. Contact the sender right away if you notice any discrepancies. Remember, even a simple misspelling can cause a flag on your tax return. Inspect all your documents carefully.
Some of the forms you will need to look out for include the following:
- W-2s from your job
- SSA-1099 for Social Security benefits
- 1099s for additional income, interest, gains and losses
- 1095-A for government marketplace health coverage
- 1098s for reporting interest and tuition payments
- W-2Gs for any gambling winnings
- Schedule K-1s for company ownership
Tax Prep Tip #2: Round Up Your Receipts
If you have your own business or plan to itemize your deductions, you will need to record expenses so that you can take advantage of any available write-offs. Gather all the receipts for business expenses, medical expenses, and other expenses that can be listed on your Schedule A or Schedule C. Receipts can be physical receipts or bank and credit card statements that show payments for these items. Once you’ve gathered them, organize them by type so that they are easy to find when you begin filing.
Tax Prep Tip #3: Acquire Records of All Charitable Contributions
Throughout the year, you may have made donations to tax-exempt organizations. These donations can provide you with charitable contribution write-offs. Keep in mind that these deductions generally apply only if you itemize rather than take the standard deduction. Most organizations, from churches to fundraisers, can provide a record of your tax-deductible contributions.
Tax Prep Tip #4: Create a List of All Personal Information
While you likely know your Social Security number by heart, you will want to jot down the Social Security numbers of any dependents you wish to claim. This way, they are easy to access, and you can be sure they’re accurate. Also, make a list of addresses for any properties you own, as well as the dates on which they were bought or sold.
Tax Prep Tip #5: Get a Copy of Last Year’s Tax Return
If you are using the same tax preparer as the previous year, they should have a copy of your tax return. If not, find your old copy and have it ready with your other tax items. Being able to reference your previous return can help you see what you filed last year, so you don’t overlook something this year.
Tax Prep Tip #6: Determine How You Will Spend Your Refund
If you expect to get a refund this year, you might want to take some time to consider what you plan to do with your return once you receive it. You have the option to apply your payment toward your tax bill next year if you believe you will owe. This can be a good idea for those who pay estimated taxes throughout the year, as it can often put a chunk toward your first installment.
Alternatively, you can choose to send the money directly to a checking or savings account or contribute it to an IRA, health savings account, or education account. If you plan to split the funds between accounts, you will need to complete Form 8888.
Don’t let tax preparation leave you feeling overwhelmed. Enjoy less stress and a smoother process by preparing everything you need for filing this tax season—and by leaning on the right support when needed.
Not sure where to start or missing a document? Your Patriot Advisor can help you obtain copies of tax forms and provide referrals to qualified tax professionals. Don’t hesitate to reach out for guidance—having the right support can make all the difference during tax season.
This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.