3 Ways to Prepare Yourself for Tax Season
Tax season usually elicits the same response from everyone: “ugh!” From your W-2s, to your 1099s, tax season can be a hassle and that’s why some tend to put it off until the last possible second, which then increases your chances of making a costly error.
No matter the assistance you receive from tax preparation programs or accountants, here are 3 ways to help this season go more smoothly:
- Make a list of income sources – Rather than waiting on the irregular arrival of tax forms, make a list of what to expect by identifying all your sources of income (e.g. work, banks, mutual funds, etc.). There’s nothing more annoying than putting in all of your information, only to have a form arrive at your doorstep—making you re-enter all of it all over again.
- Your receipts – If you’re looking to maximize your tax return this season, be sure to gather your receipts of all transactions—large or small. If you’ve never had to itemize deductions in the past, knowing the potential amount might determine on whether or not you should start itemizing. To be sure on what deductions you may qualify for, be sure to check out the most commonly missed income tax deductions.
- Don’t make the same mistakes twice (or thrice) – Learn from your mistakes to avoid the headaches that tax season is known to give. Understand what you need to keep, and create a folder where you will store these important documents. By knowing what to keep, and where to keep it, you’ll be better prepared come next year which will certainly save you a headache or two.
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