After W-2s and 1099s arrive, the countdown until the April 15 federal tax filing deadline is officially on. For some small business owners and individuals, the tax season can be filled with anxiety. With a few tips, this time of year doesn’t have to be so stressful. Here are several tax preparation steps you can take to help eliminate worries and frustration. 

4 Tax Season Preparation Tips

1. Retrieve Needed Documents

Before your tax preparation appointment, gather last year’s tax return. It’ll help with the completion of your new return. Have the social security numbers of all dependents and your driver’s license or government-issued ID. Ask your accountant about additional papers and records that may be needed.

2. Set Up Direct Deposit

Many small business owners and individual filers choose to have their income tax returns filed electronically. Also, instead of getting a refund in the mail, they prefer a direct deposit. To initiate this transaction, you’ll need to have your bank or credit union’s account and routing numbers. 

3. Prepare a List of Deductions

If you owe taxes, deductions can help reduce the amount. Start listing them now, and gather receipts and documents as proof. Some of the most common itemized deductions are for charitable donations, business expenses (if you’re self-employed), and interest on a mortgage or student loans. Your tax accountant will go through a checklist to determine your eligibility. 

4. Request an Extension

Perhaps personal or financial circumstances will prevent you from filing your federal income tax return by the April 15 deadline. If you expect to owe taxes, you can request an extension. The additional time will give your preparer until October 15, 2020, to file your 2019 return. Businesses need to submit IRS Form 7004, and individuals must submit IRS Form 4868 to obtain an extension. If you owe taxes and request an extension, the Internal Revenue Service (IRS) may charge late fees and interest until the full amount is paid.

To minimize the uncertainty of tax season, rely on The Callen Accounting Group, PLLC. They specialize in providing professional tax preparation to small businesses and individuals. Based in Mountain Home, AR, the firm serves the Twin Lakes area with customized guidance tailored to unique income situations. They’re accessible by phone and text to ensure your returns are prepared accurately and on time. To schedule an appointment, call (870) 425-6066. You can also go online for additional information about available services.