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Proper planning is crucial to filing your tax returns by the April 15 deadline and receiving a timely refund. When you get everything in order beforehand, you avoid a last-minute scramble to figure out calculations and deductions and have the peace of mind that comes with knowing that all of the forms were completed and submitted on time. Below, learn three tax preparation tips to get you ready for this year's deadline.

How to Prepare for Filing Your Taxes

1. Gather All Documentation

You'll need to collect all of the necessary paperwork to give to your tax preparation service. And, depending on your job and finances, this task can take some time. If you work for someone else, you should have a W-2 form. If you're an independent contractor, you should have a 1099-MISC form. These documents show all of the income earned from each employer or client throughout the year. If you have investment or retirement accounts, those financial institutions also issue year-end tax forms. People receiving Social Security need an SSA-1099 form. All of these forms provide information that is critical to accurate tax preparation.

2. Make a List of Deductions

tax preparation St. Louis, MOIf you are deducting specific costs from your tax burden, make a list of all of your allowable expenses. These typically include out-of-pocket medical costs, student loan interest, charitable donations, and self-employment operating expenses. You will likely need to consult the receipts and bank statements you've collected throughout the year to arrive at an exact total.

3. Decide Your Filing Status

There are several tax filing statuses: single, married filing jointly, married filing separately, and head of household, to name a few. In most cases, if a person is married, they are allowed a larger deduction if they file as married filing jointly. A head of household filing also comes with a larger deduction, as well as a lower tax rate, but you need to be single for the tax filing year, the earner of most of the household income, and the parent of a dependent child. Consult a tax preparation professional if you're unsure which status is most appropriate—and advantageous—for your situation.

 

When you're ready to file, visit William G. Molitor, CPA. Since 1990, he has been providing tax preparation and planning to the St. Louis, MO, Metro Area. He also offers bookkeeping, payroll, and accounting services, as well as financial planning assistance for individuals and businesses. Call (636) 926-0502 today to schedule an appointment or visit his website to view a full list of services.

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