Top 7 Tax Season Preparation Hacks You Need to Know

When you’re unprepared, tax season is dreadful. Rushing to gather the tax documents you need is impractical, especially if you’re waiting on documents in the mail. Whatever your situation, you can get through tax season by integrating these top seven preparation hacks. Read on to learn how to make tax season a little less stressful. 

Understand Your Status

You don’t have to be a proficient finance professional to get familiar with doing taxes. By identifying your deductions and credits based on how you file, you can already get a clearer picture of what is required of you and what you can expect in your return. 

For example, if you know you’re filing for simple returns, you might utilize tax business software and go about it DIY-style, such as using software and other tools that take care of things for you. If you are still determining your filing status, complete the IRS questionnaire to determine which filing status reflects your situation.

Know Your Terms 

Knowing the key terms that apply to taxes can go a long way in ensuring you file correctly. Brush up on financial education basics and make sure you understand the concept of tax deduction (what’s taken from your income to reduce the total income you’re taxed on). 

Adopt a Strategy 

The specifics of your tax situation will give you some idea as to what strategy makes the most sense for filing your taxes. You can also reap the benefits of modern business technology and use affordable tools online to help you complete the process. However, the most straightforward approach for those with complex returns is hiring a tax preparer or CPA. 

Know the Deadline and Act Proactively

Know when taxes are due. This is the day to have everything signed and postmarked, not the day you scramble to get everything ready. However, if you find yourself crunched for time, you can request an extension to account for any delays. 

Get Everything Organized

Next, organize your tax forms to make the process easier. This step applies to everyone, whether you hire for world-class consulting, hire a CPA, or use software and do your taxes yourself. 

By keeping your documents organized, you can better understand your finances and ensure that you file things correctly. You will spend less time paying for tax preparers or manually inputting your data by knowing your information beforehand. 

Get Familiar with the Forms You Need

Even though the majority of your tax forms will be generated through tax prep software or by your preparer, you should still understand your tax return from last year to make the process of assembling your forms for this year that much easier. 

Get familiar with the essential forms you need, i.e., W2, 1099, 1040 Schedule A, 1040 Schedule B, etc. Do your research to determine the forms you may need and understand what each one entails.

Review Everything Twice-Over

Even if you’re working with a professional tax preparer, you should carefully review everything yourself and ensure it’s all in order before you file. The last thing you need is to receive notice of submission errors. The information must be completed correctly to avoid setbacks, or you’ll end up elongating the stress. 

Get Your Taxes Done and Over with Like a Pro. 

The top seven hacks above will prepare you for tax season by getting organized so you can get started before the deadline. Set yourself up for success by utilizing the tools and resources you need to get your taxes done and over with like a pro.