5 Tips To Be Prepared for Tax Day

5 Tips To Be Prepared for Tax Day

The tax deadline may have been extended to May 17, but it will be here before you know it. If you haven’t filed and paid your taxes yet, this is your reminder to get organized! With employer forms, deductions, changing tax credits and potential changes in employment that the previous year brought, it’s important to stay organized and on top of the details this year. Here are five tips to be prepared for tax day. 

 

Organize Your Paperwork 

The more organized you are, the quicker the tax process will be. Gather all paperwork including W-2s, 1099’s, receipts, charitable donations, and other deductions you or your accountant might need. 

 

Research Deductions And Tax Credits 

Gathering your deductions is an important piece of organizing paperwork. Gather documentation for deductible items like charitable donations and don’t forget, you can claim up to an additional $300 in tax deductions for the 2020 tax year. Take time to evaluate whether or not you might qualify for other tax credits. Here are a few to consider: 

  • Child and dependant care tax credit 
  • Health coverage tax credit 
  • Your home office, if you have a dedicated space to work 
  • Expenses related to starting a business
  • Mortgage interest 

 

Meet With Your Accountant 

If you have complex personal taxes or business taxes, or maybe you want to take the pressure of filing your own taxes off yourself, it’s a good idea to set up a meeting with your accountant to talk through any worries you may have. If you’re cutting it close to tax day, you can also lean on software to guide you through the process in less than 15-minute, like with the IOOGO Tax DIY

 

Have Money Set Aside 

Think you might owe taxes this year? Make sure you’re putting aside a little extra money so you won’t have sticker shock when you see your tax bill. Okay, you might still have sticker shock but at least you will feel confident about covering it.  

 

Don’t Forget About Q1 Taxes 

If you are self-employed, Q1 taxes are still due April 15. Get together with your tax advisor to have paperwork lined up for these as well and make those payments on time to avoid any penalties! 

 

If you’re running tight on time as tax season approaches, you can always file an extension to give yourself until October 15 to file the previous year’s taxes. Keep in mind, opting for an extension doesn’t grant an extension to pay your taxes. You’ll still want to make sure those get paid. 

We’re wishing you the best of luck on tax day this year and if you need last minute help, our tax professionals are always on standby.

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