Don’t Forget These Tips for This Tax Season

Use these tips for this tax season to organize and file early.

February isn’t just the month to shower your loved ones with Valentine’s Day gifts. It’s also the time to start preparing for filing your taxes. The start of the tax season begins in late January, and you have until April 15th to send in any tax returns. Be sure to use these tips for this tax season to ensure a smooth filing process!
No matter how much assistance you get from tax accountants and programs, here are some key ways to organize your document gathering so that you’re ready to file:

  • Collect receipts together: Large or small, potential deductions like charitable contributions or business expenses add up over time. Even if you haven’t itemized deductions in the past, knowing the number of your potential deductions could determine whether you should begin itemizing this year.
  • Separate personal and business documents: If you own a business, be sure to keep all forms, receipts, and documents separate.
  • Note your income sources: Make a list of what you should be expecting by identifying all your income sources from employers to banks to mutual funds, rather than relying on the random arrival of documents. Once you have your list together, you can start a return once you’ve received all the right forms.
  • Consider an IRA contribution: You can make an IRA contribution until the tax filing deadline, and still have it count for last year.
  • Revisit your withholding instructions: Conventional wisdom has been to minimize withholding even if it means paying up at tax time because that way, you’ll have the money at your disposal throughout the year. With savings account interest rates near zero, it might be worth re-thinking this approach.
  • Prepare first: Before you sit down to file, check and double check that you have the correct forms, documents, numbers, and more in front of you!

Make your filing a smooth process by putting these tips into practice! When looking to save money and ensure the safety of your finances, reviewing your insurance coverage is key! For a quality and personalized policy in Hudson or neighboring cities in New York, visit the team at Lofgren Agency today.

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