Taxes

Things To Do Now For Next Tax Season

When you’re neck-deep in taxes, the last thing you want to think about is doing the same song and dance next year. However, there are numerous things you can do during this tax season and beyond to ensure that next year the process runs smoothly and efficiently. Here’s your tax season ultimate guide:

Learn More About the Forms

As you go through the arduous process of putting everything together this year, start compiling a list of necessary forms and backup data that you require. Whether you handle your taxes yourself or outsource to an accountant, knowing your basic needs can save you time, money, and stress in the years to come. Jotting down the forms you require will take a few extra minutes this year and potentially save you hours in the years ahead.

Micromanage Your Deductions

When it comes to taxes, knowledge is power. It is important to know which deductions you are eligible for and which you are not. Do research and don’t be afraid to ask your accountant to confirm your findings.

If you usually handle taxes yourself, consider booking a consultation with an accountant to make sure you’re on the right track. Make note of the deductions your accountant uses for you, so that you can keep them in mind if you ever switch accountants. Alternatively, you want to make sure you are not claiming things for which you are ineligible. Skipping this action can cost time and money down the road.

Don’t Shirk Your Filing

Ideally, you will keep a proper filing system all year long. If you fail to do this, things can get misplaced and cause undue stress. If you lose all your receipts and put in a claim anyway, you could be heavily penalized if an audit takes place. When you are done filing your taxes this year, ensure that everything is put away neatly. Now is the time to assess your filing system and make adjustments to ensure efficiency throughout the next 12 months.

Have an Idea of Upcoming Changes

You don’t have to be a tax expert to get through the season with ease. However, having a basic understanding of upcoming changes to tax laws and regulations is essential to set yourself up for success in the future. Deductions for which you may be eligible this year might be different next year.

Alternatively, new features could be added that benefit your business. Knowing what’s going on can help prevent you from submitting false information and ensure you are getting the best claim possible. Keep your deductions and forms list up to date as things change.

Track Your Challenges

If you struggle with a certain aspect of your taxes, write it down. This additional form of recordkeeping will help you look ahead to next year and create an action plan to prevent these problems from recurring. If you’ve forgotten or didn’t realize that you could claim your home office space and don’t have records handy, you can be sure to have them ready for next year.

Keep Your Carry Overs

Depending on your location, you may be able to keep some of this year’s items to claim next year. For example, some areas max out your education claim each year. Therefore, if you claim the max amount but still have expenses remaining, you can claim them in the following tax year. To confirm which aspects of your business and personal taxes are eligible for this sort of claim, you will need to research your local rules or consult a professional.

With ample time and preparation, future tax seasons will be a breeze. Do your research and refuse to make the same mistakes twice. As the quote says, “Insanity is doing the same thing over and over again, but expecting different results.”

When you’re neck-deep in taxes, the last thing you want to think about is doing the same song and dance next year. However, there are numerous things you can do during this tax season and beyond to ensure that next year the process runs smoothly and efficiently. Here’s your tax season ultimate guide:

Learn More About the Forms

As you go through the arduous process of putting everything together this year, start compiling a list of necessary forms and backup data that you require. Whether you handle your taxes yourself or outsource to an accountant, knowing your basic needs can save you time, money, and stress in the years to come. Jotting down the forms you require will take a few extra minutes this year and potentially save you hours in the years ahead.

Micromanage Your Deductions

When it comes to taxes, knowledge is power. It is important to know which deductions you are eligible for and which you are not. Do research and don’t be afraid to ask your accountant to confirm your findings.

If you usually handle taxes yourself, consider booking a consultation with an accountant to make sure you’re on the right track. Make note of the deductions your accountant uses for you, so that you can keep them in mind if you ever switch accountants. Alternatively, you want to make sure you are not claiming things for which you are ineligible. Skipping this action can cost time and money down the road.

Don’t Shirk Your Filing

Ideally, you will keep a proper filing system all year long. If you fail to do this, things can get misplaced and cause undue stress. If you lose all your receipts and put in a claim anyway, you could be heavily penalized if an audit takes place. When you are done filing your taxes this year, ensure that everything is put away neatly. Now is the time to assess your filing system and make adjustments to ensure efficiency throughout the next 12 months.

Have an Idea of Upcoming Changes

You don’t have to be a tax expert to get through the season with ease. However, having a basic understanding of upcoming changes to tax laws and regulations is essential to set yourself up for success in the future. Deductions for which you may be eligible this year might be different next year.

Alternatively, new features could be added that benefit your business. Knowing what’s going on can help prevent you from submitting false information and ensure you are getting the best claim possible. Keep your deductions and forms list up to date as things change.

Track Your Challenges

If you struggle with a certain aspect of your taxes, write it down. This additional form of recordkeeping will help you look ahead to next year and create an action plan to prevent these problems from recurring. If you’ve forgotten or didn’t realize that you could claim your home office space and don’t have records handy, you can be sure to have them ready for next year.

Keep Your Carry Overs

Depending on your location, you may be able to keep some of this year’s items to claim next year. For example, some areas max out your education claim each year. Therefore, if you claim the max amount but still have expenses remaining, you can claim them in the following tax year. To confirm which aspects of your business and personal taxes are eligible for this sort of claim, you will need to research your local rules or consult a professional.

With ample time and preparation, future tax seasons will be a breeze. Do your research and refuse to make the same mistakes twice. As the quote says, “Insanity is doing the same thing over and over again, but expecting different results.”

 

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Susan Paige

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