Getting organized before it’s time to file taxes can eliminate much of the stress associated with tax season. Having a system makes it easier to locate all the documents your CPA needs to prepare your return. The IRS requests a significant amount of information each year, and if you’re scrambling to find it at the last minute, there’s a greater risk of making a costly mistake. Here are a few tips that can help make filing your taxes more efficient.

How Can I Prepare for Tax Season?

1. Make a List of Possible Tax Deductions 

Deductions reduce your tax liability. As such, you want to make sure every deduction you’re eligible to claim is accounted for on your tax return. It can be helpful to create a list of all the deductions you think could cut down your tax bill, such as mortgage interest, property taxes, retirement account contributions, charitable donations, out-of-pocket healthcare costs, and childcare expenses. Having this list ready to review with your CPA will help them determine whether you should take the standard deduction or itemize. 

2. Gather Financial Records

There’s quite a bit of paperwork your CPA must have before they can begin on your tax return. Gathering it all in advance of tax season can help them finish your filing sooner so you can receive your refund earlier in the year. You’ll need to collect your W-2 or 1099 forms, as well as any other statements that show the income you made over the previous year. You should also have your last tax return, and if you’re self-employed, any receipts that prove your business expenses. 

3. Back Up Your Information

All of your financial records should be kept in a secure and accessible filing system to stay organized. However, it’s also a good idea to back this information up on your computer and an external hard drive. It’s not uncommon for a few receipts or documents to go missing, and you never know when disaster may strike. Thus, having a back up ensures you can still obtain the records you need to send in an accurate tax return.

If you’re looking for reliable tax return help to guide you through this year’s filing, turn to Corey C. Davis, CPA in Kerrville, TX. As a practicing attorney and CPA, he can provide valuable insight into the most current tax laws while ensuring your return is meticulously prepared and on time. He understands that everyone’s tax situation is unique and offers a personalized approach to meet each client’s financial goals. Call (830) 257-8800 to schedule an appointment, or visit him online to learn more about his services.