For many individuals and families, taxes are not the definition of fun. You are probably relieved that you can finally relax and say to yourself, “I’m so glad I don’t have to go through this again until next year”. But why would you put yourself, and your CPA, through this stress and procrastination? With this year’s tax deadline behind us, let’s focus on becoming more organized and efficient for future tax preparations.
Get Organized
Create a personal tax organizer system by setting up folders on your desktop to save all necessary paperwork and information relating to your taxes throughout the year.
Scan Everything
If you are overwhelmed with a shoebox of receipts, then consider a service to help you scan and organize them such as Neat. Make it a habit to save receipts accordingly as you receive them. This method can also help track your charitable contributions throughout the year so you know exactly what you donated. If you do not receive a receipt, then write it down and save it. It is hard to rely on your memory from the past year.
Retrieve Tax Documents Electronically
Why wait for the snail mail when you can download most 1099’s, W-2’s, etc. online. This method will help you gather your documents sooner to avoid last minute preparation.
Check Your Pay Stubs
Do you usually receive a tax refund or a tax bill? Look at your paystub and see what income tax you elected to be withheld; this may need to be adjusted so you will not owe an overwhelming tax bill in April.
We’re All In
Practicing these simple methods throughout the year will help you stay organized and help get your taxes done sooner. If you have any questions or comments, please do not hesitate to contact us by filling out the form below or by calling (410) 363-7211.
This information is for educational purposes only. It is not intended to provide, and should not be relied on for, any tax or legal advice. You should consult your tax or legal adviser prior to making any decision based on any specific information contained herein.
Tags: Tax