Posted on Friday, November 29, 2024
|
by AMAC, D.J. Wilson
|
0 Comments
|
Learn why NOW is time to act
Give yourself the gift of tax organization
Tax season is the time of year in which people living in the U.S. prepare for Tax Day, occurring annually on or about April 15th. Typically, individual Federal tax returns must be filed with the IRS, the main body of the government responsible for collecting taxes. Since the holiday season involves gift-giving, why not give yourself a present by heading into 2025 with clarity. Here are three ways to get a jump start on tax return organization.
1 – USE A SOFTWARE PROGRAM. It’s never a good idea to hand your accountant a shoebox of loose receipts during tax season. In fact, it’s a poor idea to be disorganized and here’s why. A state of disarray equals an increased likelihood of errors on your part, such as improper bookkeeping and documentation. On top of that, your tax professional is busy. Handing over a mess, especially at the last minute, could lead to a delay in filing your tax return and increased fees to get things sorted. So, it’s to your benefit to keep good records. There are many accounting software programs like Intuit QuickBooks that people can use to organize receipts and establish structured and functioning systems. As a bonus, you will be creating electronic copies of your documents – so they will not be overlooked, tattered, or lost.
2 – USE A TAX ORGANIZER FORM. Ask your tax return professional to supply you with a tax organizer workbook. You may be given a booklet form or a fillable PDF. The latter provides options to create orderly spreadsheets on your computer, save and download what you’ve input, and print it on your own computer. A tax organizer workbook precisely details which documents are needed from clients to complete their tax returns. This includes information such as medical and legal paperwork, charitable receipts, household and business expense documents, and more. Using a tax organizer makes it less likely to overlook deductible expenses. There are even more benefits. Not only will you be prepared, but you will minimize potential errors and likely save time and money on your tax preparation. Note that returning clients can often request a tax organizer showing pre-populated data from the prior year’s return for guidance.
3 – MAXIMIZE YOUR BENEFITS. Preparing for taxes filed in 2025 ahead of the New Year allows folks the potential to maximize their benefits. How so? Understand that each year, the taxes you file are typically for the prior year’s activity. Thus, the decisions you make in 2024 influence what you present to your accountant in 2025. Taking actions before year end, such as building medical expenses in one year to be eligible for deductions, bunching charitable contributions, buying office equipment in a given year, or rolling over expenses may have positive benefits on your tax return. Since tax laws and independent variables influence what benefits taxpayers are eligible for each year, it’s optimal to seek the advice of your tax professional ahead of the calendar year’s end – while you may still act to save on taxes before it’s too late.
Tax season is a busy time of year, especially for tax professionals such as CPAs. Rather than procrastinate getting your stuff together, and risk confusion, delays, or higher-than-normal fees, be generous to yourself by getting a jump start on your tax return organization.
Read the full article here