When tax season is around the corner, it can be stressful and can take a lot of your time. So before preparing your taxes, here are some things that you can do to be efficient when tax season finally starts.
Pick a Tax Preparer
Having a tax preparer can help you have a stress-fee process when filing for your taxes. One good way to find one is by referrals from family, friends, and people you know. The IRS has a directory of federal tax return preparers with credentials. That is another good way to find your preparer.
Once you have selected one, it is good if you schedule for an appointment with them sooner. Do not wait too long for it or else, it could be too late. Knowing everything you need before the tax season begins with the help of your tax preparer is a big plus.
Document Your Personal Information
This does not only mean your name or your Social Security Number, but this also includes the Social Security Number of each of your dependent that you will claim. Other information you need to take note of are the other properties you own and its address, and properties you bought and sold with the dates and amount.
Have All the Documents You Need
It is important that before the tax season starts, you already have all the documents needed. These documents could be the tax documents you need from the banks, your employers, and anyone whom you do business with. You also need to have a copy of your last year’s return.
Gather the Receipts You Need
Whether you itemize your deductions or have the standard deductions, your tax preparer can help you with what is the best option for you. Once decided, then it is the right time to gather all the receipts you need so that it will be more efficient for the tax preparer to do their job, which results to lower fees for the service.
Plan for Refunds
If you are expecting any refunds, there are several ways on how to handle them. Again, if you work with a preparer, they can help you with it.
One option you have is for the IRS to deposit your refund directly to your bank account or they can have a check sent to your mail.
Another option is to buy a US Savings bonds through Treasury Direct or you can contribute your refund to certain accounts like education savings account and health savings accounts.
Last option is that you can have your refund, be it a portion or all, applied to next year’s taxes. This is an option you can take if you usually pay estimated taxes throughout the year. It can help you cover the first quarterly installment.
Being able to do everything that was mentioned above will help you be more efficient when preparing for your taxes. You do not want to be rushing and missing everything you need because you are not prepared enough when the tax season finally starts.
Everything mentioned in this article is a guide to be efficient when preparing for your taxes. You may follow it or do it your way. The bottom line here is that it is important that you prepare ahead of time so that everything will run smoothly once you begin filing your taxes.