Two of the most memorable days on the American calendar are December 25 th(Christmas) and April 15 th– the day income taxes must be filed. While most people start preparing for Christmas as early as possible, an equal number of people choose to wait until the very last minute to start and file tax returns. Instead of falling into the latter category, use the following tax preparation tips to make the event as stress-free as possible.
The IRS has made valiant strides to simplify tax forms, reduce the complexity of filing, and minimize the amount of time required to file your taxes. Even so, it still can be daunting task, especially when you consider individual tax filings only happen once a year. To demystify filing your taxes, several companies offer extremely helpful and sophisticated software, such as TurboTax, H&R Block, Free Tax USA, and more. Today, you can file your taxes with the few strokes of your keyboard and clicks of your mouse.
Whether you’re an individual tax filer or a business, everyone loves deductions. Yet, if you do not have the proper documentation, you may miss out on thousands of dollars in tax deductions. Traditionally, the widely accepted practice for storing receipts has been to stuff them in a folder or shoebox. However, in today’s digital age — there’s an app for that.
There are several apps for Apple, Android, and Windows devices that make storing receipts as simple as taking a picture with your smartphone and entering the specific information of the receipt. Best of all, your receipts will be backed up in the cloud, which means they will be readily available and organized when you or your tax preparer needs them.
One of the biggest tax preparation mistakes is waiting until the last minute to start planning. For instance, if you are using a digital app to store your receipts, it’s best to scan it and append each receipt as you get it.
You can use this same practice for storing income statements , bank statements, applicable credit card statements, etc. The goal is make tax planning a year-round conversation; so when it’s time to file, you will have everything in its proper place.
THPK Certified Public Accountants opened their doors in Steamboat Springs, Colorado and has served the accounting, tax, and financial needs of the Yampa Valley ever since. Our Steamboat, CO staff has over 125 years of combined accounting and tax preparation experience!