Although tax season just ended, it’s wise to start thinking about next year’s return. According to the accountants at Denmark & Brown PC in Statesboro, GA, it’s better not to wait until the last minute to begin these preparations; the further in advance you plan, the easier the filing will be and the better chance you have of reducing the burden. They recommend taking the following steps to get ready for the upcoming tax season.
Locating all the documents and receipts saved over the last year can be one of the most grueling parts of tax preparation. Keep everything organized in one place to save time and lessen the risk of losing important paperwork. Create a file that contains pay stubs, investment summaries, receipts for medical and business expenses, and records of charitable donations.
Contribute to Retirement Accounts
Even though you have until April of each year to contribute to retirement accounts, doing so over the course of 12 months instead of right before the deadline makes it easier to put money aside for this purpose. Accountants advise that setting aside more allows you to effectively reach your retirement goals and pay less in taxes.
If you automatically have taxes withheld from your paycheck, it’s wise to review the amount chosen. Over time, as financial and life situations change, it may be necessary to adjust these figures. If you’re overpaying, there’s no reason to wait to get that money back in the return. On the other hand, when underpaying, you may get blindsided by what you suddenly owe.
By preparing for next tax season, you can avoid unpleasant surprises arising at the last minute. Stay in touch with the accountants at Denmark & Brown PC throughout the year instead of waiting until the last minute to have your questions answered. With over 45 years of combined experience, these CPAs ensure the process is as accurate and seamless as possible. Call (912) 764-4123 to schedule a meeting with an accountant, or visit the website to learn more about what they offer.