As we approach the end of the year, a lot of people are planning for the festivities that characterize the month. Others could be busy exploring new methods on how to lose their excess weight, or even quit smoking that has posed great health risk for years, and still, people could be planning on the best venues to take their families for a vacation.
But as you come to the close of 2017 and move to 2018, you need to start preparing for the tax season. Here are some of the great tips that you may benefit from as you plan to deal with your tax returns when the deadline comes knocking.
One of the first things that you need to do is to get your documents ready. You will need both the hard copies as well as the digital ones. It is recommended that you organize these documents for your tax filing by the end of the year.
Some of the data that should not miss on these documents are your regular income including your W2s and 1099’s; other income such as real estate income, dividend earnings, investment gains; loan information such as interest paid on student loans, mortgages and more; business-related expenses including meals with the clients, technology purchases.
What’s more, you should get these documents as well: your tax-deductible expenses such as commuting and medical expenses, donations to charities or non-profit organization. When you have all these information, you may have to start entering the data on your tax return as soon as possible. You may choose to do it manually or digitally.
You also have to remember to include your lesser-known deductions. You need to deduct every possible penny from your taxable income.
Theses are the tax deductions that are mostly forgotten, and they include children costs including the daycare, adoption costs, education expenses, casualty and theft losses, taxes paid to state or local authorities or even the personal property. You may have to look at your IRS list of deductions and ensure you take everything into consideration, including those that apply to you and your loved ones.
You may have to get your electronic filing ready for your taxes. You can make good use of the Turbotax. If you file electronically, you will not only reduce errors, but you also get to save the information every year, and you will not have to re-input them in future for security reasons.
What is more, you will not have to memorize the tax code or learn about the complicated changes in tax rules. To get started, you simply type your details, including your date of birth, social security numbers and job information and you are ready to begin. Read more on electronic tax system here.
You also need to maximize your deductions while minimizing the surprises at the end of the year. You need to give out to charities or spend your holiday nicely.