Tax season can be a nightmare even if you have done all the right preparation. The key to avoiding a stressful tax season is to start preparing NOW for the returns when you file taxes next year. Putting simple steps into action and you will get the best return with the least amount of stress that you have yet to face.
Simple Steps to Take Now for 2013 Taxes
Meet with your tax professional. Talk about those places where you have maximized your deductions in the past. Look at places where you could be getting additional deductions or credits. Having a plan is always the best way to start down a new path.
Create an organizational system. One of the reasons most people panic at the end of the year is because nothing has been kept in order. Having a folder system for keeping receipts, a ledger for registering income and payout or a combination of organizing techniques will all make the end of the year a little easier. You may even want to invest in software that will let you record your financial data as you go and then give you the option of printing out reports at the end of the year.
Include all possibilities. You may not be able to claim all of your medical expenses (including payments for health insurance), but you may be able to claim at least a portion. Keeping a tab on all of these types of expenses can add up as a bit return or smaller bill at the end of the year.
Review past returns. Seeing how you deducted in past years can help you prepare for taxes in 2013. The added bonus of reviewing old returns is that you may find errors or missed deductions that could land you an unexpected check from the IRS.
Start an investment account. You can begin to set aside money for your future. It will also give you a deduction for your taxes in 2013. Choosing an tax deferred investment account is best done with the help of a financial advisor. Schedule a meeting and then make a commitment to follow through with that plan.
Items to track for every entrepreneur or small business owner:
Mileage or automobile expenses (only one can be deducted) – keep up with trips to meetings, trips to purchase supplies or other work related mileage.
Home expenses - the home office can allow for deductions on ordinary household expenses like electric, phone, garbage. Measure the space of the dedicated office and your tax professional can then determine the amount to be deducted for those expenses.
Internet services - this can be a full deduction for those businesses that require the internet to exist. Blogging, online writing, and website businesses may also be able to deduct hosting and website design costs.
Classes, courses and conferences - the fees to attend and the expenses involved with attending are all deductible. Keep all the receipts from the events so that you can prove the deductions if it becomes necessary.
Preparing for tax season can be stress free in 2012. You simply need to begin planning for the IRS before the winter months roll around. Starting your organization and financial steps now will keep you from running around in a cloud when the 2013 tax season begins to creep up.
Talk to your financial advisor, put a tax plan into place and then begin the process of following through with your organization and plan on a consistent basis. The time you invest in your planning now will save you a great deal of stress in the future. Now is the perfect time to begin getting ready for tax season 2013.
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