Preparing for the Upcoming Tax Season
The new Tax season is getting close, and it’s time to make your final filing preparations for 2017 and look ahead to the 2018 Tax season.
As we near the end of the year, your thought may probably be filled with everything from holiday vacation plans to planning the next year’s budget, making you forget about preparing for the upcoming Tax season. Leaving your preparations late may lead to a stressful and frustrating last-minute session. The frustration of searching through file cabinets and piles of deteriorating documents to arrange needed forms and beat the filing deadline. While there is still time to get your finances in order before the filing deadline; To avoid a crunch, you should prepare for tax season well in advance.
Start organizing your documents
There are some documents you need to have on hand before you can complete the filing process. The type of tax documents you need primarily depends on the activities that you carried-out the previous year. Firstly, you need to get your Tax return for the previous year as it is required to verify your identity. Next, you’ll want to gather any other relevant paperwork from 2017 such as 1095-A if you purchased health insurance through a state or federal exchange, 1098-T if someone started college that tax year, 1098 forms if you paid interest on a mortgage or student loan and also any W2/1099- related forms. Why not speed up the process by gathering and organizing those documents into a folder.
Create a folder for your expenses
Another folder that should be created in preparation for the tax season is an expense folder where all your expenses in the tax year can be organized and calculated. You’ll want to make sure you include paperwork of all expenses like medical expenses and any other significant life expenses in the folder before filing your tax return.
Look for deductions
Taxpayers are allotted a deduction, the amount depending on income and expenses. If the expenses exceed the standard deduction, the taxpayer can fill out an itemized deduction form. In general, you can deduct expenses that are both ordinary and necessary. As long as those deductions are supported with the proper paperwork, taxpayers can substitute this for the standardized deduction.
Some deductions that may be worth considering include depreciations, employee wages, insurance premiums and rent expenses. Organize all the receipts you need to claim your tax deductions and any relevant records you may need to reference when filing your Tax.
Consider working with a professional
Hiring a Tax professional like Kelly Tax Services to help in preparing your taxes can be a significant investment. This will guarantee that you’ll meet every deadline, take full advantage of all the tax breaks you are entitled and to significantly reduce your tax liability. Our tax professionals will not only help you in filing your tax but also advise you on the things you’ll need to do to plan for next year’s taxes. We will also help in balancing the book, getting your finance in order before the filing deadline.