These Tax Prep Tips Helps Everyone get over the Agony of Tax Season
It amazes us how tax preparation is one of those things people hold off until the last minute. Why? I can understand if you owe money, but why run the risk of paying a penalty? And, let’s say you overpaid the IRS last year? Why not get your refund as quickly as possible? Here are 7 Tax Prep Tips for Everyone, small businesses and individuals.
1. Start a Folder Marked 2018 Taxes
Our first suggestion of the Tax Preparation Tips is when you start a folder marked 2018 taxes know that the year is for the full completed year. Therefore, you want to think of it as 2018 documentation filed in 2019. In that folder put all documentation that comes to you in the mail. Not just the mail, your employer or businesses that contract you may send you online information. Not just employers, often, when you donate online, charitable organizations will send an email rather than a snail mail document.
2. Organize using a checklist
A checklist will be a guide for you to make certain you have all the correct documents necessary. When it comes to filing taxes, especially with tax reform, having the details right, helpful and important. Here is how you will access Worthtax’s organizer.
3. Triple Check Your Tax Work
The third recommendation we have out of these Tax Prep Tips, is to triple check all your entries and calculations. You want to assure accuracy. You should never send out your taxes until you review them at least three times. Check all your personal information, Social Security numbers, names, DOB, address, documents, etc. Mistakes on a tax return leads to slower processing by the IRS, which means you will get your refund later, not to mention, errors could raise red flags. No likes an audit. Here at Worthtax, we have a Triple Check Accuracy policy.
4. Organize Receipts and Documents All Year Long
We know you are busy. The last thing you want to do is lose business prospects because you’re stuck behind a desk organizing your documents. However, avoid the bad habit of last minute tax organizing and preparation. Bottom line, avoid potential problems that creep up because you didn’t see it last year. The sooner you know about a problem, the sooner you can fix it. And, the sooner the other party can recollect what went wrong. Even when the next deadline is months away, you should still work toward being organized today.
5. Know Your Tax Deadlines
This goes along with Tax Preparation Tip #4 above. When you mark the deadlines in your calendar, you designate your attention to your business. Block out enough time to work toward corrections. So, let’s say the deadline is, April 15th, make sure you give yourself enough time to work through all the requirements to meet that deadline. And, there is nothing wrong with meeting a deadline early. Remember deadlines don’t only apply to the IRS, you have to file quarterly estimated payments for your local and state taxes, as well. Here are some deadlines you may want to take note of: Corporate Tax Calendar Deadlines and Individual Tax Calendar Deadlines.
6. Schedule Your Appointment With Your Tax Preparer Now.
The Avoid procrastination at all costs! The is probably the most important of all our tax prep tips. The official start to tax season was January 25, 2019. Yes, you have the option to file an extension, but why take on the extra cost, and prolong the agony?
7. Ask for Help With Your Tax Preparation
There are many resources available to help small businesses and individuals with tax preparation. However, when you are looking for one-on-one tax preparation assistance, consider hiring a one of our tax professionals. I want to personally invite you to meet our professional Tax Preparers. At Worthtax, we are here all year long. We don’t close shop at the end of tax season, so there is a commitment to accountability to our clients.
Do you have questions about these tax prep tips?
We can’t emphasize it enough, getting the W-4 right is important. Perhaps you are concerned about getting your withholding correct, please contact this office and ask for Alex Franch, BS EA. Alex will project your 2019 tax liability and complete your W-4 after taking into account multiple employments, a working spouse, self-employment income and other tax issues unique to your specific tax situation. And, with tax season quickly approaching in a little over a month, we encourage you to be proactive and set up your appointment today! We are also offering a variety of client discounts to save you money.
Alex Franch, BS EA
Alex is a Tax Specialist and Partner at Joseph Cahill & Associates / WorthTax. He has a diverse background including a Bachelor of Science from Boston College in Mathematics and extensive military service. Alex is an Enrolled Agent and has a decade of tax preparation experience. He is passionate about serving businesses with tax and financial planning.
Sources and Resources
- 7 Ways Small Business Owners Save Money on Taxes Legally
- Getting the W-4 Right is Important!
- Form 1099 Miscellaneous Filing Deadline
- IRS Tax Guidance: S Corporation Stockholder, Reasonable Compensation
- 12 Common Tax Problems to Avoid
- Tax Reform is Confusing Part 2
- Tax Reform is Confusing! Here is a Side by Side Comparison Part 1
- Learn About This Year-End Tax Strategy
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- Charitable Contribution: Tax Plan for Potential IRA-to-Charity Provision
- Home Office Tax Deduction Good or Bad?
- 529 Plan: Higher Education, Learning the Hard Way
- Minimizing Tax on Social Security Benefits
- Employee Business Expenses: Tax Reform Suspends Tax Deduction
- Preparing Taxes for 2018 and Beyond