Now that 2019 is in full swing, it’s time to start thinking about filing your 2018 tax return. The good news is tax return preparation doesn’t have to be stressful—especially if you take a few simple steps before tax season starts. Here are just a few tasks to do sooner rather than later to eliminate a considerable amount of hassle come tax time.

3 Steps to Take Before Tax Season Begins

1. Compile Critical Forms

You should start receiving tax-related forms in the mail and perhaps even via e-mail, including W-2s and 1099s, in the coming weeks. You may also be able to access these documents by logging into various online accounts. Save all such forms in a safe place for when it comes time to file.

2. Gather Relevant Receipts

If you’re planning on itemizing this year—or want to see if taking the standard deduction makes fiscal sense—it’s time to start gathering relevant receipts and invoices. Don't forget to pull up records of any charitable donations, too. To streamline this process for next year, designate a paper file or digital folder—or both—where you store all receipts, invoices, and records as you acquire them. This is one of the easiest ways to simplify tax return preparation. 

3. Review Last Year’s Return 

Even if your financial situation changed considerably from 2017 to 2018, reviewing last year’s return before filing this year can be helpful. Start by taking note of all the similarities the returns will share, and write down all the same documents you will need to gather. Then, make a note of all the differences that this year's return will have so you can determine any additional forms you may need to file.

For help with tax return preparation this year, turn to Cloyd & Associates PSC. Serving Corbin, Lexington, and London, this accounting firm provides comprehensive tax planning services for both individuals and businesses throughout Kentucky. Their financial services include debt management, budgeting analysis, payroll administration, IRS representation, and estate planning. To reach out to someone on their team and discuss your tax return preparation needs, fill out their online form or call (606) 864-8110.