Preparing for the next tax season may not be the most exciting task, but it can save you a great deal of time, stress – and potentially at least some money – in the long run. Take a look at the following tips from a well regarded business accountant in Highlands Ranch to learn how to get started:
- Begin by collecting all the necessary financial documents. This includes W-2 forms, 1099s, bank statements, investment statements, and any other documents related to your income and expenses. Create a designated folder or digital file to keep them organized.
- Take a look at your 2023 tax return. It can serve as a useful reference point for deductions, credits, and sources of income.
- Ensure that all your personal information, such as your name, Social Security number, and address, is up to date. Notify the IRS and any relevant parties if you’ve had any changes.
- Tax laws can change from year to year. Keep an eye on any updates and changes in the 2024 tax regulations, deductions, or credits that may impact your return.
- If you plan to itemize deductions, start organizing records for expenses like medical bills, mortgage interest, charitable contributions, and business-related expenses right away. Keep all receipts and documentation in one place.
- Use a tax calculator or work with a tax professional to estimate your tax liability for the next year. This will help you plan for any potential tax owed or refunds.
- If your financial situation is complex or you have specific tax-related questions, always consider consulting a tax professional. They can provide personalized advice and ensure you take advantage of all available deductions and credits.