Tips for Tax Preparation

Tips for Tax Preparation

Tax season is stressful. Most people don’t understand the tax code, and learning the hundreds of new regulations each year takes a lot of time. Whether you own a business or have challenging personal taxes, you want to structure your income and assets to gain the greatest number of deductions and pay the least amount of taxes. This requires a tax planning strategy.

Finding a Tax Professional

You may be thinking, “ I will just search for tax preparation services near me Desoto TX to find a tax preparer,” but this may not be the best strategy. Consider asking for referrals from your friends, family and peer group. You may also ask other businesses, professionals in your field and those in the tax field.

Next, do some research. Although credentials aren’t always required, you can check the credentials of the tax services professionals by contacting the state regulatory board and IRS enrolled agent status website. These services should also have a professional reputation and experience, so check their online and Better Business Bureau ratings. Find out who will be preparing your taxes. For example, will a junior associate or outsourced company do the work? Finally, discuss their fees.

Gather Your Paperwork

To prepare for your taxes, you need to gather your personal information, including your social security number and those of your spouse and dependents. However, you should also gather your previous year’s state and federal taxes. All your income documents, such as W2s and 1099s, should be collected.

Gather the receipts for all your deductions, such as retirement contributions, medical bills, property taxes and donations, and business expenses, such as office supplies, inventory and rent. You may also qualify for credits, such as child tax, learning and energy credits. Look for other deductions, such as moving expenses, self-employment health insurance and student loan interest. Finally, get a copy of the tax payments you have made throughout the year.

Tax preparation is challenging, and different services may give you different results. Therefore, choose a reputable tax service and provide the service with clear, organized paperwork.

 

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