Filing a tax return is time-consuming. In fact, the average taxpayer spends about 13 hours filling out their return and getting everything in order for the IRS.
If you have a more complicated return, it could take you even longer. For most people, this means sacrificing relaxing evenings at home or devoting an entire weekend to the task.
There are things you can do to make preparing taxes easier. You just need to know where to start.
Here’s what you need to do before you start preparing your return.
Get Your Personal Documents Together
Before you can start preparing taxes, you need to get your personal documents together. This should include the social security numbers for your dependents and spouse if you’re filing together.
You should also find both your state and federal tax returns from the previous year. These can help you see which deductions you qualified for last year and which ones you may qualify for again.
If you’re not sure where those returns are, don’t panic. They’re not essential. They’re just helpful to have on-hand and can serve as a guide to help you file for the current year.
Compile Income Statements
The amount you owe (or get back) on your taxes comes from the total amount of money you earned throughout the year and the taxes that got withheld from each paycheck.
If you’re an employee, your employer should send you a W-2 form by the end of January. This form shows how much you made and how much your employer withheld for taxes over the year. If they haven’t sent it out or you never received it, let them know as soon as possible.
They’ll need to reissue the W-2 before you can file your taxes.
You’ll also need to compile the forms for any income you received outside of your regular job. This could include contract work, investment income, and even gambling winnings.
If you didn’t receive forms for your additional income sources, you’ll still need to report that income. Go through your bank statements and total up the amount you earned.
If the amount of money withheld from your paychecks is more than the amount you’d owe, you’ll get a tax refund. If you still owe at the end of the year, you’ll need to pay that amount to the IRS when you file.
Gather Your Receipts
The government allows you to deduct certain expenses you pay throughout the year from your total taxable income. This reduces the amount of taxes you owe and could increase the amount you get back after you file. However, you’ll have to prove that you paid for those expenses.
Compile receipts for any work-related purchases you made throughout the year. This can be anything from work uniforms to office supplies.
If you’re not sure whether an item qualifies for the deduction, add the receipt to the pile. Your tax preparation expert will be able to determine if that item qualifies. You’ll also want to gather receipts for any medical expenses, property taxes paid, and donations made to charities.
Keep in mind that it may be better to stick with the standard deduction when you file your taxes. For 2019, the deduction is $12,200 for people filing on their own and $24,400 for couples filing jointly.
If that amount is higher than your itemized deductions, use the standard deduction. Your tax prep specialist will be able to help you decide if it’s in your best interest.
Think About the Credits You Want to Claim
Deductions are only one way to lower your taxable income. The other way is through claiming tax credits.
Not everyone is eligible to claim a tax credit, so it will depend on your personal situation.
For example, if you paid a child’s college tuition, you’re eligible to deduct a portion of that cost from your taxes. If you contributed to a retirement fund, you may be able to deduct those contributions from your taxes.
If you’re interested in claiming a specific tax credit, make sure you bring the right documentation to your tax preparation appointment. Without proof that you spent that money, you won’t qualify for the credit.
Be On the Lookout for Scams
Unfortunately, robocalls and scams are a major problem around tax time. This means you’re likely to get calls and emails from people claiming to be IRS representatives. Those people are phishing or looking for ways to steal your money or identity.
Don’t fall for those scams.
The IRS never makes unsolicited phone calls and they won’t send you an email demanding personal information. If you receive a call or email asking for a social security number, bank account number, or other personal details, ignore it.
If you think it could be legitimate, contact the IRS directly and find out if there’s an issue with your taxes.
Make an Appointment with a Tax Prep Expert
Filing taxes takes a lot of time and can be confusing if you’re not incredibly well-versed with the current tax code. If you make a mistake, you could end up having to file an amended return or, worse, get audited by the IRS.
That’s why it’s best to schedule an appointment with a tax preparation expert and let them handle the filing process for you.
They’ll be able to maximize your deductions and make sure that everything gets filed correctly, saving you time and frustration. The sooner you schedule the appointment, the easier it will be to get your taxes filed on time and the faster you’ll get your tax refund if you’re owed one.
Preparing Taxes Doesn’t Have to Be Stressful
Preparing taxes is confusing if you’re not sure what you’re doing. The best thing you can do is leave it to an experienced professional.
Follow these tips and get ready for tax season quickly and easily. Once you’ve got your documentation in order, contact us to schedule an appointment with an experienced CPA.
We’ll help take the stress out of filing your taxes.
