Tax season might seem daunting, even with all the right preparations. However, you can ease your stress by starting preparations in advance for the next tax filing season. Simple action steps can guide you towards a more profitable tax return and lessen the stress you may have encountered previously.
Top Tips for Preparing Your 2013 Taxes
Set a meeting with your tax expert. Discuss areas where you have successfully utilized your deductions in the past, and explore opportunities for further deductions or credits. Formulating a plan is always a good starting point.
Establish an organization system. Most tax-season panic arises out of disorderliness. Arranging receipts in a folder, keeping an income and expenditure ledger, or adopting other organizing strategies can make year-end less overwhelming. Consider investing in software that allows recording financial data in real time and provides year-end report printing functionality.
Explore all options. You may not be able to claim all your medical expenses, including health insurance payments. However, you might be able to claim a portion. Tracking these expenses can pay off in the form of a substantial tax return or a reduced bill.
Revisit past returns. A review of your previous deductions can guide you in preparing your 2013 taxes. The bonus? You might spot overlooked deductions or mistakes that could result in a pleasant surprise from the IRS.
Open an investment account. This enables monetary contributions for your future, while providing a tax deduction for 2013. The best way to choose a tax-deferred investment account is with the help of a financial advisor. Schedule a meeting and be committed to follow the devised plan.
Essentials for every entrepreneur or small business owner to track:
– Mileage or vehicle expenses — you can only deduct one, so record business-related travel.
– Home expenses – the home office arrangement might allow for deductions in regular household expenses like electricity, phone, and waste disposal. Measure the workspace area for your tax expert to determine suitable deductions.
– Internet services – Full deductions can be claimed by businesses that rely strongly on the internet. Costs for hosting, and website design for blogging, online writing, and website businesses may also be deductible.
– Educational pursuit– Fees and related expenses for classes, courses, and conferences are all deductible. Retain all receipts for verification purposes, if needed.
Tax season of 2012 can be stress-free if you begin planning before winter arrives. Starting your financial organization and preparation steps now will prevent last-minute chaos when the 2013 tax season approaches.
Consult with your financial advisor, implement a tax strategy, and remain consistent in your organizational habits and adherence to the plan. The sweat you invest in planning now will save you considerable stress in the future. The present is an excellent time to gear up for tax season 2013.
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