How to Prepare for Next Year"s Taxes Today
April 15.
Similar to a visit from your in-laws, tax day comes every year like a surprise even though we all know it's coming.
Procrastination and poor money management can make it difficult or tedious to file taxes, not to mention that dealing with the IRS is never fun anyways.
Regardless, even though next year's tax rates are up in the air, it's possible to begin preparing for April 15's next visit today! Preparing for your taxes in advance saves you time, a headache, and doesn't hurt your pocketbook as much! Avoid Tax Debt by Preparing for Next Season Preparing for taxes today can have many surprising benefits, such as avoiding tax debt.
Many individuals who incur tax debt do so because they didn't manage their money wisely or because they failed to file their tax return.
However, staying organized will help you prevent these pitfalls that many others have fallen into.
1.
Stay organized.
Since it can be difficult to keep track of all the necessary documents or paperwork for taxes over the course of the year, consider investing in a file box or folder.
Be sure to store important documents such as last year's taxes and personal data.
If you're like most people and your income doesn't change much year-to-year, last year's filing will make it easier this year.
Furthermore, be sure to also keep receipts of your purchases.
There are special deductions for home improvement or business-related purchases.
2.
Consider going digital.
If you're naturally an unorganized person, going digital might be a great option for you.
This way you can simply scan an important document into the computer without having to worry about its physical location.
Just be sure to make back-up copies in case your computer crashes! While your teacher might have fallen for "My dog ate my homework," it's unlikely that the IRS will sympathize with "My computer ate my receipts.
" 3.
Become familiar with tax breaks and deductions.
Money spent on home renovations, home office, and other deductible needs can give you pretty substantial tax breaks.
Again, it can be difficult to keep up with these receipts over the course of the year, which is why organization is paramount.
4.
Watch what you withhold.
Yes, it's great to be on the safe side, but many people fall into the trap of giving Uncle Sam too much.
Consider using the IRS's official withholding calculator.
You'll get the money back in the end through a tax refund, but keeping withholding parameters in check will allow you to keep them on track.
Ultimately, preparing for next year's taxes today all comes down to organization.
Keeping track of your receipts, contributions, and other financial matters will make it easier when its time to deal with the IRS again.
And because you're ready to file taxes, you won't have to worry about falling into tax debt like so many other Americans.
It truly pays to be organized - in more ways than one!
Similar to a visit from your in-laws, tax day comes every year like a surprise even though we all know it's coming.
Procrastination and poor money management can make it difficult or tedious to file taxes, not to mention that dealing with the IRS is never fun anyways.
Regardless, even though next year's tax rates are up in the air, it's possible to begin preparing for April 15's next visit today! Preparing for your taxes in advance saves you time, a headache, and doesn't hurt your pocketbook as much! Avoid Tax Debt by Preparing for Next Season Preparing for taxes today can have many surprising benefits, such as avoiding tax debt.
Many individuals who incur tax debt do so because they didn't manage their money wisely or because they failed to file their tax return.
However, staying organized will help you prevent these pitfalls that many others have fallen into.
1.
Stay organized.
Since it can be difficult to keep track of all the necessary documents or paperwork for taxes over the course of the year, consider investing in a file box or folder.
Be sure to store important documents such as last year's taxes and personal data.
If you're like most people and your income doesn't change much year-to-year, last year's filing will make it easier this year.
Furthermore, be sure to also keep receipts of your purchases.
There are special deductions for home improvement or business-related purchases.
2.
Consider going digital.
If you're naturally an unorganized person, going digital might be a great option for you.
This way you can simply scan an important document into the computer without having to worry about its physical location.
Just be sure to make back-up copies in case your computer crashes! While your teacher might have fallen for "My dog ate my homework," it's unlikely that the IRS will sympathize with "My computer ate my receipts.
" 3.
Become familiar with tax breaks and deductions.
Money spent on home renovations, home office, and other deductible needs can give you pretty substantial tax breaks.
Again, it can be difficult to keep up with these receipts over the course of the year, which is why organization is paramount.
4.
Watch what you withhold.
Yes, it's great to be on the safe side, but many people fall into the trap of giving Uncle Sam too much.
Consider using the IRS's official withholding calculator.
You'll get the money back in the end through a tax refund, but keeping withholding parameters in check will allow you to keep them on track.
Ultimately, preparing for next year's taxes today all comes down to organization.
Keeping track of your receipts, contributions, and other financial matters will make it easier when its time to deal with the IRS again.
And because you're ready to file taxes, you won't have to worry about falling into tax debt like so many other Americans.
It truly pays to be organized - in more ways than one!
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