Tax preparation and filing is a way of life for most Americans. And, many Americans dread tax season. It doesn’t have to be so overwhelming.
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Are you a simple, DIY filer? If so, your return may not be that challenging and you may be able to use software that will walk you through the interview and file your return. However, don’t become complacent and miss deductions and credits you may be entitled to claim. Each year, assess any major life changes, cash infusions, or expenses you had and confirm whether this could affect your tax filing.
Is your situation a bit more complicated? Do you have investments, real estate, a small business or did you marry, divorce or suffer the loss of a spouse? If any of these apply to you, hiring a professional tax preparer could be your best approach. If you do hire a pro, make sure they are highly-skilled and if possible, have the Enrolled Agent (EA) designation or another advanced designation in taxation.
Not sure which type of filer you are, or should be? Well, get help! As a CFP®, I can help you assess your tax situation and decide which may be best for you.
If you dread annual tax prep this time of year, then start now preparing for next year’s filing season. Take these actions:
- Create a small binder or folder specifically for tax documents.
- Add items you use every year such as your W-2, 1099 forms, 1095 forms, real estate taxes paid, etc.
- Identify all categories (i.e., charity donations, unreimbursed business expenses, etc.) and subtotal these before you begin your tax form.
- If you use a professional, they will likely send you a tax organizer. Work on this periodically and not all at one time.
- Start early! Don’t wait until the week of April 15 when taxes are traditionally due. For one, all the best preparers are booked! It will also make tax prep more stressful and that is the last thing you need.
Tax preparation doesn’t have to be stressful. As an independent Certified Financial Planner™, I can help you plan for the current tax year and be on top of filing next year. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #tax #taxfiling #stressfree #hireapro #CFPPro #enrolledagent