Are you one of the millions of people who dread doing their taxes? Do you always want to put off filing until the very last minute? Here are some great practices to help you prepare for tax season year-round. Schedule Monthly Check-Ins A lot can change in one year. Jobs and income, family status, and so much more. All of these things will affect your taxes, but by the time tax season rolls around, you may realize you didn’t withhold enough, and now you owe a large, one-time sum. It would’ve been easier to manage if you’d caught it sooner, so why not set yourself up for success this year? Just like paying bills or subscription costs, you should also check in with your tax maintenance every month. That way, if you or your spouse had a job change, you inherited a large sum of money, or you started a family, you’ll know what to expect next January, and you can better prepare for it. Keep (& Organize) Your Receipts We know, we know – you have that pile or that box with all your receipts. Or you moved all your electronic receipts to a folder in your email app. But keeping track of the expenses that may result in deductions is an exercise in organization as well as collection. Before making a big purchase or payment, make sure to document the expenses you plan to count as deductions, from rent to mileage to charitable donations. It’s easier to organize one month of receipts 12 times a year than it is to do them all at once and hope you didn’t forget anything. Watch for Out-of-Season Tax Documents Just because you aren’t ready to start thinking about your taxes doesn’t mean you won’t receive something in the middle of the year that you’ll need to keep for tax purposes. When you sort your mail (both physical and electronic), make sure to pay attention to documents that expressly say they are for tax purposes, and to set aside anything else you think might be helpful or needed when you file your taxes. This includes checking your spam or junk folders …
Continue Reading about 5 Practices to Prepare for Tax Season Year-Round →
