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How to Prepare For Tax Season

The year is coming to an end so it’s a good time to start preparing for tax season. It is essential to remember that it is never too early get all your documents in order. The good thing about being prepared is that once it’s time to file your taxes, you’ll be completely ready to either input your data into a software program or sit down with a tax professional. A large number of individuals make use of paid tax preparers while others use free alternatives. After searching for a professional or a free alternative, there are some steps that you need to take to prepare you for tax season. In this article, we will take a look at a couple of important ones.

Arrange Your Personal Information and Documents

Getting all your personal documents and information is the first step to preparing for tax season. Ensure that you have your tax ID information alongside your identification card, driver’s license, and passport before you go for your appointment. You should also gather your tax documents from your employer, banks, and other companies you do business with. To ensure that you have all the tax documents, you have to track your income.

If you have dependents, you are going to need all their documents (social security, date of birth, payment records, and others) as well. Other personal information like property bought or sold should be duly noted down as well.

Have Your Receipts Handy

Gathering your receipts is very important as it plays a crucial role in the tax refund process. Itemizing your deductions will help especially if you compare it with the standard deduction – this way you can choose the one with the bigger write-off. Receipts that fall into this category include medical cost receipts for issues not covered by any insurance or health plan. Some others include charitable donations, insurance payments, tuition payments, real estate, and others.

Get Your Financial Information

Having your bank account number as well as your routing number ready for a direct refund deposit into your account can come in handy. It is also essential that you take your last year’s tax refund with you as you are going to see the tax preparer.  If you can, choose to receive your payment in the form of a check so you do not get hit with direct deposit fees.

Wrapping It Up

There are different tax resources available online for tax payers to have all the information preparing them for tax season. Planning ahead for your tax refund is also a good way to prepare for tax season – you can apply for your tax refunds against next year. There are different ways to maximize the use of your tax returns to grow your wealth. It is essential that you remember that it is never too early to start preparing for tax season – so get on it.

If you are overwhelmed by the idea of tax season or you already have had the “pleasure” of working with the IRS, you could benefit from the skill and experience of a licensed attorney.  Elias Dsouza of Dsouza and Strachan Lawgroup Group has been helping people navigate the complexities of the tax code.  Contact Elias today for a free consultation.

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