Tax time can be a daunting experience for taxpayers who don’t have their tax documents ae organized before consulting a tax preparation firm. But it must be done to ensure that your taxes are in order and that you are getting all the deductions to which you are entitled.
The best thing to do is to organize your tax documents as they come to you during the year rather than stuffing everything into a file folder or, worse, having them loose in different places and waiting until the last possible moment. If you are self-employed, you will have your quarterly income statements.
You may find Turbo Tax handy if you are filing yourself.
Filing System Eases the Burden
Tax documents are organized into two basic topics, income and deductions. You may use envelopes or folders to keep these documents. Organize our files by tax topics to reduce errors and make the task easier for your accountant, if you hire a CPA, or for yourself if you do your own taxes.
Income documents are provided by your employer, whether it is one company or more. By law, they must provide your income statements to you by Jan. 31. That, however, doesn’t mean you can’t start before then with your deductions.
Have a folder for deductions, such as charitable contribution receipts, medical expenses, interest paid on your mortgage, child care, student loans, automobile registration, government credits, and contributions made to you 401K and other retirement accounts. You may have other deductions.
Consulting with a Public Certified Accountant
Keep handy your bank account routing numbers, and other information for filing taxes electronically to ensure you have everything you need. Take all of this information to your tax advisor to reduce the time it takes to configure your taxes. At Li, Friezen & Grossetta, CPAs, PC, we can help you organize your taxes by providing checklists.