As the year begins to wind down, a lot of people are already starting to think about tax season? Tax season is defined as the period from January 1 to April 15, so it’s right around the corner. Are you ready? Will your taxes be filed on time, and will you receive all the deductions and tax breaks that you and your family are entitled to? Below are three quick tips to help you prepare for tax season.
1. Get all your paperwork together
In January, you should be receiving your income statements from your employer and your financial institutions. Be sure to put these in a designated file or envelope to give to your tax preparer when the time comes to file your returns.
If you itemize your deductions and expenses, then hopefully you’ve already set aside all your receipts and charity donation paperwork throughout the year. If not, it’s time to round those up and keep them all together with your income statements.
2. Squeeze in those last-minute tax breaks and deductions
Speaking of donations, if you’ve been planning to make any year-end donations to charities or to your religious community, now is the time. Be sure to get a receipt, as those donations are deductible. You might also consider making any necessary tax-deductible purchases such as uniforms required for work or new equipment for a home office.
3. Decide how you’ll file your taxes
If your tax return is fairly straightforward, you may decide to file it yourself online. But if you have any circumstances that make your tax return more complicated, a tax professional can help you identify deductions you may not be aware of, and make sure you get the largest return possible. Situations such as owning a home-based business, buying a house, or having kids in college should be taken into consideration when deciding how to file your returns.
VTax makes it easy to file your returns with the help of a tax professional. VTax offers a mobile app that allows you to upload all of your financial information, which is then reviewed by a tax professional. In most cases, the cost of filing your taxes with VTax is less than going through a local tax prep office, and you’ll receive your guaranteed maximum refund. Learn more about VTtax and be ready for tax season!