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How to Prepare for Tax Season

Prepare for Tax Season

Gather your documents for the tax filing season ahead.

Although tax season is not one of the most-loved times of the year, you can make it quick and painless with a little organization, planning, and early filing. The start of the tax season begins in late January, and you have until April 15th to send in any tax returns.

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 amount of your potential deductions could determine whether you should begin itemizing this year.
  • 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 tax forms. 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.
  • Learn from it: Learn from your missing receipts or trouble calculating gains and losses for next year’s return!

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 Renton or neighboring cities in Washington, visit the team at Humble & Davenport Insurance today.