Preparing Ahead For A Pleasant Tax Day
Preparing Ahead For A Pleasant Tax Day
How did you spend your last tax day? In line at a post office at almost midnight, dropping off your taxes? Dreading going on an extension again – knowing if you owe and don’t pay it on time, there will be penalties, but having no idea how much you need to send now?
April the 15th comes around every year. We all know it. We all hate it. We all know what we can do to not hate it so much – but do we do it? Let’s take a look at some practical things you can do to make tax day a day of relaxation – since your taxes were sent in already.
Plan Ahead – Information Gathering
When things come to you in the mail that are pertinent to your taxes, do you file them away carefully in one place so that you can find them when it is time? For example, your W2’s, investment or banking information, tax forms and booklets – these are all important to be able to take with you to the CPA, or to the tax preparer, or to the kitchen table if you do your taxes yourself. Plan ahead – keep these mailed items in one place.
A Year Ahead? You’ve Got To Be Kidding!
Now that you’ve got a file folder for the stuff that arrived in January, be a little more ambitious for next year. Tax day will be smoother if you’ve been keeping all tax pertinent stuff in one spot all year long.
For example, your charitable contribution slips should be kept together. If you are filing a regular 1040, you will be able to itemize deductions – and for many people, charitable contributions is a major deduction. Whether those contributions came in the form of money into the collection plate at church or clothing and shoes donated to the local thrift shop, there are established ways to document your donation. Be sure you are keeping whatever records are needed to substantiate your donations.
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You also need to keep track of your medical expenses. Doctor co-pays, prescription medicine, light treatments for your psoriasis – all count toward your medical deduction. Keep track of them.
Many of your business expenses will also be needed. Keep that information divided into the categories for tax purposes. And your childcare expense receipts – and education expenses. There are many things that need to have documentation if you don’t want to be audited after tax day. Audits are best avoided at all costs – so no making up numbers for your taxes!
Call Your Tax Preparer Early
If you have someone help with your taxes, call them well before tax day. They will have more time to complete your taxes accurately, and you won’t be nearly as stressed.
Enjoy Tax Day!
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