3 Ways to Prepare For Your Taxes

3 Ways to Prepare For Your Taxes

Tax season… Perhaps one of the most stressful times of the year. Unfortunately, a lot of people are not fully prepared when tax season hits. It may be March already, but it’s important to file as early as possible and not leave it to the last minute.
Here are three ways to help prepare for your taxes this year:
1. Know Your Timeline
For most people, federal income tax returns, and most state and local tax returns are due April 17th this year. Making sure you have everything you need before the deadline is one of the best ways to ensure a less stressful process.
You’ll get the fastest refund by filing early using e-file and requesting direct deposit.
2. Download a Tax Prep Checklist
This is a great way to stay organized and make sure you aren’t forgetting anything. You can Google tax preparation checklists,” and choose one that seems like a good fit for you. Here are a few we found to get you started; merchantmaverick, H&R Block, Smart Tax.
Place the checklist in a file folder. As you gather each tax document, simply place it in the folder and check it off the list.
3. Organize Your Documents Beforehand
Gathering all your documents, such as W2s, 1099s, receipts for donations and deductible expenses, and account statements should be the first thing on your to do list so that you can organize them accordingly. If you do this early enough you will have plenty of time to contact anyone if you encounter any issues.
This is one of the worst times to procrastinate because your finances could be negatively affected if you don’t have all the necessary materials lined up. Making an effort to put those documents in the correct folder, and keep those folders in a safe place is one of the best ways to lower your stress levels through mid-April.
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