Tax Season: What Should You Remember?

person doing their taxes
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Filing your tax return can be quite a daunting task that could result in a few hiccups, especially if you’re clueless about the legalities.

Fortunately, many companies offer services related to tax preparation in Salt Lake City and other areas. These companies have the expertise and trusted people who can ensure that you can have your tax returns filed smoothly and with a little inconvenience as possible.

If you don’t want to find yourself in a tight bind due to some loose ends in preparing your tax return, read on to find out these tax season tips:

Get a reliable tax preparer

While some individuals and corporations file their own tax returns, a significant majority still prefers to hire a licensed tax preparer.

For one, such a professional can take care of the bulk of legwork required for proper and speedy tax preparation, which means more free time for the client. Also, since preparing tax returns can be quite complicated, a tax preparer can weave through such a maze and ensure a smooth and hassle-free filing.

Having said these, make sure that you’ll get the services of a licensed and reliable tax preparer. There are companies in Utah that handle tax preparation in different locations, so getting one shouldn’t be a problem. If the company you’re eyeing to hire has a sterling track record and a clean reputation, they should be a great candidate to consider using their services.

Track your income

Keep in mind that your tax preparer won’t do everything on your behalf, so you have to flex some muscles and do the preparations needed. One such legwork is tracking the income you have generated for the year.

A person can have multiple sources of income, so it’s a must to have the documentation ready for each source. These are the different forms that taxpayers usually fill out for their tax return filing:

  • Form W-2 – Comprises state or federal tax withholding, salaries, and tips, among others
  • Form W-2G – Income that is sourced from forms of gambling
  • Form 1099-G – For people getting unemployment benefits
  • Form 1099-R – For pension, IRA, and annuity income
  • Form 1099-Misc – For freelancers
  • Form 1099-B – Stock and property sales income
  • Form 1099-Div – For people who earned dividends

stacked coins on a report

Document deductible items

The IRS accepts deductible items declared by taxpayers, which include the following:

  • Home improvement expenses
  • Home rents
  • Credit card purchases
  • Childcare expenses
  • Donations to charitable institutions
  • Medical/dental expenses

Remember that your due diligence in listing down these deductible items would matter significantly in how much total taxable income you would eventually incur. So, if you want to pay the lowest possible income tax, this is one thing on which you would have to spend a great deal of your time.

Be as organized as possible

The previous items point to one thing: being organized.

By making it a habit to document your tax-related items in the simplest form of organization that works for you can be a huge burden off your tax preparer’s shoulders. Keep in mind that you and your tax preparer will save time and ensure that you’ll have all bases covered to lower your total taxable income based on the documentation that you have.

Remember these tips, and you can expect a rather smooth tax filing experience.

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