Filing your taxes is another task that gets added to your seemingly never-ending to-do list, and when you aren’t adequately prepared, it can be stressful and time-consuming.
So, it’s no surprise that most taxpayers dread tax season. Instead of scrambling at the last minute to get everything you need together and organized, take some time to prepare for the upcoming tax season.
Not sure where to start?
AA Tax & Accounting Services wants you to be confident as you navigate tax season. Follow along for strategic tax tips that will help you get your finances to successfully file your tax return this coming April.
Organize your tax documents
This may seem like a no-brainer, but gathering all your tax documents throughout the year as you receive them can save you time in the long run. Instead of looking through various stacks of documents in your home office, you’ll know exactly where to go to grab your tax information. Use a folder that has multiple compartments inside so you can divide your tax documents into respective sections, such as W-2s from employers, 1099-INTs from the bank, and 1099-NECs from contract work.
If you have opted to receive all your tax documents electronically instead of through the mail, use a similar digital method to keep track of all the information you gather.
Evaluate the past year
When it comes to filing your taxes, you must consider anything that has occurred throughout the past year that can impact your taxes.
Have any changes could be tax-deductible?
Have you gotten married, bought a house, changed jobs, or moved across state lines?
Consider all expenses related to any significant life changes that may be tax-deductible.
Donate to charities
If you’re looking for a way to earn a few more tax deductions for this year’s tax return, it may be time to go through your closets and determine if there is anything you can donate. From old appliances to clothing, you can donate these unused items to charity and get a tax deduction for a charitable donation.
This is one of the fastest and easiest ways for taxpayers to earn a tax deduction you can take advantage of when filing your taxes.
Check tax credits
Did you take advantage of any tax credits over the last tax year?
The pandemic has brought on quite a few considerations for taxpayers due to Economic Relief Payments, as well as tax credits such as the Child Tax Credit. If you received a tax credit in 2021, make sure you have all the necessary documentation needed to properly claim them when filing.
With so many changes and additions to tax credits and deductions in recent years, we recommend researching which credits or tax deductions you qualify for and what you need to do to get them.
Tax Consulting Services in Cedar City, Utah
The past few tax seasons have been a bit complicated, and this upcoming tax season isn’t any different — but there’s no need to get stressed out. Use these tips to guide you through your tax deductions, so you feel confident and prepared for tax season.
No one should go into tax season with their questions unanswered. So, if you still have questions about your taxes, AA Tax & Accounting Services can help. Our team of tax consultants has the experience of navigating the most effective strategies for maximizing their deductions and tax credits with our tax consulting services.
The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money. Contact us to schedule an appointment.
