Top Tips For Preparing Your Taxes

Posted on: 2 December 2019

One of the things you'll need to do each year is to get your taxes ready. This will mean filling out the appropriate forms and filing these with the Internal Revenue Service (IRS). There are many things that will make this task easier for you and could save you money. Learning specific tips for doing your taxes may be extremely beneficial.

1. Research your deductions

Knowing the tax deductions you qualify for can be extremely helpful. You'll want to do an adequate amount of research to find out what these may be.

For instance, if you've added solar panels to your home or had a great deal of medical care, you can typically deduct these amounts. If you want to reduce your tax bill or work towards getting a refund, you'll be able to with many tax deductions.

2. Gather your documents

The key to making tax season a much less stressful time is by being prepared for this in advance. You'll want to think of all the materials you'll need before starting this job, and some of these are below:

  • Income information – This will include your W-2, rental income, 1099, and any other documents that list your income for the year.
  • Capital gains – If you invest money, you may have a report that lists your capital gains. It may be necessary to include this with your taxes.
  • Medical receipts – Paying out-of-pocket costs for medical care is something you may need to do, and having your reciepts on record is vital.
  • Business expenses – If you're a business owner and have several qualifying expenses, you'll want to have the proper documentation for these.

3. Consider your filing status

It's necessary to know in advance the situation you need to use when filing your taxes. For instance, are you married and filing jointly or separately? Are you the head of your household or a single filer?

This should be determined before you attempt to do this task at any time.

Working to meet the tax filing deadline is something you'll want to be certain to do. Having all your documents together will help ensure this is possible, and you'll have less stress during this time. However, if this job is too much for you, it's vital to rely on a professional tax filing service. Doing this could be the key to helping you minimize your payments and maximizing your refunds.

To learn more, contact a professional like Jeffrey Beebe CPA today.