Ah, tax season. Just the thought of it brings on a little bit of that tax time stress, doesn't it? But it doesn't have to be this way. With some preparation and a bit of guidance, you can get through the tax season properly, and maybe even come out ahead.
At P3 Accounting, we specialize in making tax time less taxing for our clients. So, if you're also thinking about the upcoming tax season, this guide will help reduce stress and improve your tax preparedness with just a few expert tips!
1. Start Early
Starting early is the simplest way tax preparers can make sure that everything's ready before the filing deadline. This doesn't just mean starting to think about your taxes earlier than usual, but it's about maintaining an organized system throughout the year. Keeping your financial documents in order—such as receipts, invoices, and statements—can save you a lot of time when you start filing.
2. Stay Organized
Create a dedicated folder for all your tax-related documents. This could be a folder on your computer or cloud for every digital file you may have, or a drawer in your desk for physical documents (including the paperwork for last year's return). Basically, being organized immediately makes everything less stressful, so make sure you have everything stored properly.
3. Know What You Owe
A big part of why your tax return can feel overwhelming is the uncertainty around how much taxes you'll have to pay. This can be even more complicated if you have multiple streams of income (e.g. investments or freelance income). Being able to estimate how much you owe through proper bookkeeping and documentation can really make tax season much more manageable.
4. Know What's Deductible
Many taxpayers miss out on valuable deductions simply because they aren't aware of them in the first place. Common deductions can include charitable donations, education costs, medical expenses, and more. When you know what you can deduct, you can expect a lower tax bill. We recommend making a checklist of potential deductions early in the year and adding to it as you go.
5. Document Everything
For every deduction, there needs to be a corresponding piece of evidence. Keeping track of receipts, bills, and even logs of miles traveled (if your deductions include transportation) is a great way to prepare for your tax return. Digital apps can simplify this process by keeping everything in one place and are especially handy if you're audited.
6. Use Automation
Tax software has come a long way. Now, they offer tools that can automate much of the tedious work involved in filing taxes. These programs can import data directly from your financial institutions, track deductions, and even handle more complicated filings like those for small businesses or freelancers.
7. Stay Secure
Along with an increase in digital tax tools comes higher risks of data and information theft. To avoid these things, use reputable software and make sure your internet connection is secure when you're transmitting information or making a direct deposit. Additionally, be wary of phishing attempts during tax season.
8. Adjust Your Withholdings
At the end of tax season, you can adjust your withholdings, especially if you ended up owing a lot or receiving a large tax refund. If you'd prefer a tax professional to do this for you, accounting firms like P3 Accounting can help you analyze the situation and make sure that your withholdings match your actual tax liability. This way, you get to keep more money in your pocket throughout the year.
9. Consider Quarterly Payments
If you're self-employed or have notable non-wage income, making quarterly tax payments can keep you from facing a huge tax bill in April. This spreads out your tax responsibilities throughout the year and can help you manage your cash flow better.
10. Know How to Handle IRS Audits
Don't panic. The thought of an IRS can be stressful (understandably so), but keeping good records and understanding your filings are your best defense. If you ever do get the dreaded audit notice, remember that our team is here to help. We can guide you through the process and make sure you have all the necessary documents and support.
11. Stay Informed
One thing about tax laws is that they're always changing. Keeping up with these changes means you get to comply with them, and that you learn about new opportunities for tax savings. P3 Accounting can help you stay informed throughout the year so you don't have to worry about anything.
12. Look Ahead
Thinking ahead can largely affect how you manage your taxes. This could mean making investments that are tax-efficient or understanding how future changes in state and federal tax law might impact you or your business. Ultimately, having regular planning sessions with a tax professional can keep you ahead of the game.
13. Seek Professional Help or Advice
If you're unsure about your tax situation, consulting with a tax professional can go a long way. They can offer you helpful advice based on whatever your financial situation is, including needing assistance with your tax refund, late filing, and so on. Our team at P3 Accounting is seasoned at breaking down complex tax issues and providing the most helpful actionable advice.
Reach Out to P3 Accounting for a Successful Tax Season
Sometimes, the best way to make sure you achieve a stress-free tax season is to call in the experts. With the right preparation and a bit of help from the pros, you don't have to dread the tax season anymore.
So, if you're searching up "accounting firms near me," look no further than P3 Accounting! Our expert services go beyond just minimizing your taxes—we also make the entire tax filing experience as hassle-free as possible.
Give us a call today at 405-265-8383 so we can get started and make this tax season your smoothest one yet!
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