It is never too early to start prepping for tax season. Starting early will save you time and stress down the road. This also takes some of the pressure off so you can get all your documents in order without that scary deadline looming over your head. If you want to get your taxes done without any major hassles this year, make sure you do not wait until the last minute. Instead, get a head start now. Here are some simple tips to get you ready for tax season.
Organize Your Documents
You’re bound to accumulate countless forms, receipts, and documents over the tax year. So the first big step is to get all of your paperwork in order, so you know what you’re working with. For personal returns, you may have W2 forms for each job, various Form 1099s for Social Security benefits, dividends, interest, contract work, and more. You may also need a Form 1095A to purchase health care coverage from a government marketplace, 1098s for mortgage interest, tuition payments, or student loan interest payments. In addition, a small business return may also require other forms, including Schedule C or 1099-Misc, for a sole proprietorship.
Don’t Forget the Deductions
Every tax year, people miss out on possible tax deductions that would have saved them a lot of money and time. Tax deductions lower a person’s tax liability by reducing their taxable income. Some examples of deductions include healthcare costs, property taxes, mortgage interest, and some job-related expenses. In addition, you can claim deductions for things like property taxes and internet services if you operate your business at home.
Consider Hiring an Accountant
A trusted tax professional, such as a certified public accountant, can be an incredible resource when it comes to preparing your tax returns. An accountant can help you navigate federal and state tax regulations and assist you with adjusting to all the recent changes in the Federal income tax codes. Additionally, if problems ever arise with your tax returns, it’s helpful to have a financial expert on hand when dealing with the IRS.
Have a Plan for Your Refund
Getting a lump sum of money from the government is always great! It can be tempting to spend your refund immediately, but it’s helpful to think about what you want that money to go to in the future. Do you want to put it to a down payment on a car or house? Or will you finally go on that trip you have been dreaming of? Whatever your goal is, planning for your refund is just as important as planning for tax season.
Contact Bowman & Company Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim to decrease your taxes and increase your net worth through responsible, timely, and accurate record keeping. We offer our services to clients throughout the Washington, D.C., metropolitan area, including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.