There is one event that you can count on to come around each and every year: tax season. Filing your income taxes is an important task that shouldn't be taken lightly. Many people rush through the filing process and end up missing out on valuable deductions that might help them yield a larger return.
Keep this simple tips in mind this tax season to help you maximize your return while reducing the amount of stress you feel when filing your taxes.
1. Print out copies of financial records to help identify deductions.
Claiming all of your eligible deductions is critical when filing your income taxes. Many taxpayers are eligible to receive deductions that they might not even know about. Take the time to print out all of your financial records before visiting with your tax preparer.
Bank account and credit card statements can be valuable resources that a tax specialist can use to identify deductions. You may find that you get a bigger return if you take the time to provide your tax preparer with detailed financial information at the time of filing.
2. File as early as possible.
Because tax preparation can be stressful, many people put off filing their income taxes until the last possible minute. Unfortunately, waiting to file your taxes can create unnecessary stress.
Employers, vendors, and financial institutions are required to send you any pertinent tax documents by the end of January. This gives you plenty of time to have your taxes prepared by a professional. By completing your tax preparations early, you can expedite your refund or allow yourself plenty of time to save up for any taxes that you might owe.
3. Review your returns from the previous year.
It can be beneficial to take a look at your tax returns from the previous year before filing your current income taxes. Unless you have experienced significant changes (marriage, divorce, a raise, etc.), your tax information should remain relatively unchanged.
You can use last year's return to help you estimate how much you might receive as a return. You can also compare your current tax preparations to your accepted return from last year to help identify any mistakes that might result in an IRS audit.
Taking the stress out of filing your income taxes will make this necessary task a lot easier. Maximize your deductions, file early, and use previous returns as a guide to help make this tax season as stress-free as possible. Contact an accountant, like Jeffrey Beebe CPA, for more help.