Tax season is a chaotic time for many Americans, often because they don’t prepare. It doesn’t have to be a stressful time, and sticking to proven tax preparation tips earlier in the year is the best place to start. You’ll find that planning throughout the year leads to a seamless filing process come April, so use the following tips for the best outcome.

Year-Round Tax Preparation Tips

1. Track Your Receipts

Many Americans spend the last weeks of tax season hunting down receipts for home repairs, business expenses, and other items that they can deduct. Save yourself the hassle by filing these receipts throughout the year. There are many helpful photo apps that connect with financial planning computer software and apps. When you receive a receipt, snap a photo, and it will be automatically logged and organized so you can easily find it when you file.

2. Create a Retirement Savings Plan

Rather than trying to max out your 401(k) or IRA at the last minute in April, establish a contribution plan for the entire year. You can set this up with your employer if you’re using auto-withdrawal from each paycheck, or sit down with a financial expert to create a plan. It’s an important foundation of your budget that will give you an idea of what taxable income you can deduct and a forecast of what you’ll save.

3. Set Money Aside for Estimated Taxes

Many people, such as 1099 employees, are hit with a tax bill rather than a return at the end of the year because federal taxes aren’t withdrawn from their paychecks. It can be financially devastating, so start planning now. Dedicate a portion of each paycheck to a savings account for estimated taxes—30% is a safe amount. Don’t touch this money throughout the year. Come tax time, you’ll have the funds to cover your anticipated tax bill, and you might even have some left over.

4. Stay Up-to-Date on Tax Laws

Tax laws can change throughout the year. Likewise, your filing status may change if you take a new career path, get married, or have another major life event. Make sure you’re familiar with tax laws as these changes occur. You’ll be able to make adjustments, such as increasing self-employed retirement savings or couples deductions, so you have the best outcome when you file.

Professional help can make a big difference in tax preparation, and American’s Favorite Insurance & Tax can assist. This Desoto, TX, insurance agency helps its clients receive the coverage and tax services they need. They offer auto and home insurance, business insurance, and general financial assistance, which you can explore on their website. Call (972) 662-8221 to book a meeting with an agent, or connect on Facebook for more tips.