Arena and Associates, Inc. – Rob Arena – Tips to Help You Plan for Next Tax Season

aaTAX_9.15Tax season seems to sneak up on us every year. Oftentimes, we find ourselves overwhelmed and anxious knowing that tax season is coming up.

Filing taxes doesn’t have to be an ordeal. It comes every year and the steps are pretty much the same. It can be less time consuming and less frustrating if you start preparing for next year’s tax season right now.

Don’t let tax season scare you into an anxious state. Here are a few tips that will help make the filing process much easier.

Stay organized

Most people will procrastinate filing their taxes and rush at the last minute to make the deadline. Now, you forgot your spouse’s birth date. Or maybe you were scrambling to find your kid’s social security number. Tax season is enough of a headache. Tracking this information just adds to the hassle of doing your taxes. Don’t wait until the end of the year to consolidate your documents.

The IRS use social security number to track everyone. A missing social security number could cost you. Gather all information and documents at the start of the year and place them in a secure spot.

Plan to maximize credits and deductions

Plan ahead and perform some research on how you can maximize the credits and deductions you can claim.

If you have paid for expenses related to your job and it wasn’t reimbursed by your employer, this can be deducted on your return. Work-at-home individuals, on the other hand, you can claim deductions for your home office.

Find a tax preparer

The first year I paid an accountant $800, it definitely put a hole on my budget. But then I realized it was a good idea after all since I was able to save $10,000 in taxes. An accountant can help you use tax saving strategies, receive a bigger refund and pay less in taxes.

Don’t rush at the last minute to find an accountant to complete your tax return. Find one sooner rather than later.