There are different types of people that you will see when it is time to work on your taxes. The one type has a file that they have set aside and collected all the documents that they would need to file their taxes. The other type seem to be the one that is unsure about what they need and where to even find it. They tend to have to locate the important things and ask around about who would have access to what you need. Taxes are something that are stressful and can be hard to deal with when the time comes and that is why most people want to know what to do so that they are better prepared. The preparation you do will make the time it takes to file taxes easier and will go more smoothly. You want to be sure that you talk to a tax preparer about what you need based on your own personal circumstances. Mark Dicus & Company outlines what you can do to prepare for tax season.
Get a Copy of Your Old Tax Return
The first thing you want to do is make sure you have a copy of your tax return from the year prior. This is a part of the taxes that you will need to file for the current year especially if you are planning to have your return direct deposited to your bank account. You also want to use your old tax return so that you can find information that is readily available to you so that you can transfer the same info onto your new taxes. You will have quick access to your social security numbers and addresses that you might otherwise need to look up. The old tax return is a pot of gold for a tax preparer.
When you are going through your year you want to make sure you know where any and all income has come from. You might think you have one job and that is it but you could be overlooking some other income you are getting. This could come from an IRA or other retirement payout, it can be a stimulus check, money made from a small business or work done for a friend for example. There are lots of areas that people tend to make money aside from their regular job and that is why it is important to have a list. This list can have who you made money from and what tax form you are expecting.
What Can I Deduct from My Taxes
The other thing you can do is to make sure you know what you can deduct from your taxes. The deductions will lessen the amount of money that you might owe to the IRS. If you are a homeowner you have a list of deductions from mortgage interest and property tax. You could also have medical deductions that you can use as well as education and even charitable donations that you have made through the year.