Helpful Tips for Tax Season
There’s no sense in denying it—it’s time to start thinking about your taxes. Luckily, there are plenty of things you can do to make tax season less painful. One thing you’ll want to consider is hiring a tax service.
Working with a professional is a smart way to make your taxes simple and ensure you’re getting the best deal. Here are some other tips to get you started:
- Stay organized:If you operate a business, make sure your personal and business accounts are separate. You may also want to make quarterly tax payments to avoid penalties. Are you going to be writing off expenses? If so, be sure to keep a digital record of all the relevant receipts. Lastly, you may want to put money into savings so that you can cover your tax bill.
- Check out last year’s taxes:Some of the information you’ll be filing this year will be similar to last year. You can get a rough idea of how much you owe along with basic info like employer tax IDs from these documents. Of course, this won’t be the case if your situation changed in the last year, such as getting a new job, buying a new house or celebrating the birth of a child.
- Do your research:Do you know all the new laws? For example, Congress passed a massive tax reform package that could mean you save some dollars. Keeping up with the news and the latest tax changes means you won’t leave any credits or deductions on the table. You can also scan websites for expert tax advice, which could address any questions you may have.
- Use your resources:Electronic statements from financial institutions will make it easy to keep track of your finances. Similarly, accounting software can do wonders now so you don’t need to waste time on data entry.
- Don’t try to game the system: Be honest in reporting your income and attempting to qualify for credits and deductions. Dishonesty is likely to get you audited, which will mean more time and money spent on dealing with taxes. It’s just not worth it.
- Remember charitable contributions, investments, loan payments, etc.:When people think of taxes, they often think of income. But you may qualify for tax breaks if you gave money to charity or paid off student loan interest. Again, thorough records of finances will help you with this when tax season comes around.
- Bring in a professional:Hiring a professional certified public accountant (CPA) will make your life easier and could save you money. A CPA will know exactly what you qualify for and will fight to get you the best deal possible. Plus, did you know that tax preparation fees are tax deductible?
For the best tax service and high-quality customer service to businesses, partnerships, corporations, farms and individuals alike. We’ve been in the business for many years, serving all kinds of customers. Contact us today to discover how we can help you during this tax season.