Tax Preparation tips to reduce your stress and keep more of your money

Tax day may be quickly approaching, but there is no need to panic! With some preparation, you can take control of your tax situation and reduce stress come April 15th. Following these tax preparation tips can set you up for success come tax season.

So take a deep breath and prepare to tackle those taxes confidently!

Get organized and keep records

Tax deadlines are fast approaching, so the first step is to get organized. This means gathering your relevant financial documents, including W-2s, 1099s, and receipts for any deductible expenses.

This means you should keep records of all your income and expenses throughout the year. This includes invoices, receipts, bank statements, and anything else that can prove how much money you made or spent.

If you don’t have physical copies of these documents, don’t worry – most banks and businesses now offer online statements that you can download and print out if needed. And if you’re ever audited by the IRS, having detailed records will make the process much easier.

Know what you can deduct

When it comes to taxes, there are some things that you can deduct and others that you can’t. For example, most people know they can deduct charitable donations from their taxes, but did you know that you can also take the cost of business travel as a deduction?

If you’re self-employed, keep track of your mileage throughout the year to deduct it comes tax time. You should also consider the location of your work because if you work from home, you may be able to report a portion of your rent or mortgage interest as a business expense.

Tax preparation tips

Create a budget

Now that you have all your financial information in one place, it’s time to create a budget. First, determine how much money you need to live on each month and track your spending.
This will help you know where your money is going and where you can cut back, and a clear picture of your income and expenses lets you see where your money goes each month.

Know the deadline

One of the most significant sources of stress during tax season is the looming deadline. Make sure you know when your taxes are due, and give yourself plenty of time to complete them. There are a lot of tax deadlines besides the well-known tax day on April 15.

If you are self-employed, your quarterly estimated taxes are due on April 15, June 15, September 15, and January 15. You may expect imposed penalties if you don’t pay your estimated taxes or file your return on time.

If you’re missing any documents, don’t wait until the last minute to request them. Give yourself plenty of time to get everything. You can find out on the IRS website if you’re unsure when your taxes are due.

These tax preparation tips will help you avoid any last-minute scrambling and allow you to complete your taxes with a clear head.

Calendar - Tax deadline

Understand the process

Another significant source of stress during tax season is not understanding the process. If you’re not familiar with the ins and outs of filing taxes, take some time to educate yourself. These tax preparation tips should be the first step in gaining proper tax education.

Many resources are available to help you understand the tax preparation process. The IRS website is a great place to start. In addition, they have a section specifically for taxpayers who are new to the process.

There are plenty of books and articles on the subject. A quick Google search will reveal many options for learning about taxes, but you must make your search specific. For example, if you work in Las Vegas, search for Las Vegas tax preparation which will give you more localized results for tax preparers, tax returns, and investment opportunities.

If you are a business owner in Las Vegas, you should find a good accountant there. So when researching the best option for your financial plan, search for Las Vegas tax preparation tips that will help you take advantage of eligible deductions you are entitled.

Your local library is also an excellent resource for tax information. They likely have various books on the subject, magazines, and other resources.

Of course, you can always visit a tax preparer to get help with your taxes. This is especially helpful if you have a complex financial situation.

Time to collect

Once you understand the tax preparation process, it’s time to collect the necessary documents. The following is a list of some of the most common documents required for tax preparation:

  • W2 forms from all employers
  • 1099 forms from any side hustles or gig work
  • Receipts or bank statements for expenses related to business or rental properties
  • Childcare receipts
  • Student loan interest statements
  • Home mortgage interest statements

This is not an exhaustive list, but it covers some of the most common items needed for tax preparation. Follow this link (https://handsaccounting.com/appointments/) for a complete list of documents. Be sure to check with your accountant or tax preparer to see which of their tax services will fit your financial situation the best. 

Best tax preparation tip: Hire a professional

Still stressed about filing your taxes? It’s time to consider hiring a professional tax preparer or accountant.

If you are in South Florida, H&S Accounting & Tax Services can help you navigate the process and ensure everything is processed correctly. Our tax preparation tips can be a great way to reduce stress and get the best possible outcome for your taxes.