If you plan to prepare your taxes yourself, starting ahead is essential. Getting organized now can help you avoid delays and keep you on track to meet your filing deadline.
Before you begin, gather your documents and list forms to collect from employers and financial institutions. It includes W-2 forms, 1099-MISC forms and other tax forms.
Gather Your Documents
Whether you file your taxes or hire a professional, the process can be stressful and time-consuming. Preparation on the front end can make the entire experience less overwhelming and more efficient.
First, gather all the necessary tax documents to support your income and deductions. It includes W-2 forms, 1099-T and 1099-E forms from employers, receipts for healthcare, property taxes and any other expenses you claim as deductions or tax credits.
Having all your tax documents in one place with Denver Tax Advisor tax preparation Denver makes it easy to access and file them when you prepare your return. It also comes in handy if the IRS or Denver’s tax authority audits your return and asks for records supporting your income or deductions.
Find A Tax Preparer
Finding a tax preparer is an essential part of filing your taxes. You can find a local tax pro through your state’s government or professional associations and ask for referrals from friends and colleagues.
When you meet with a potential accountant, please bring along your most recent tax return to give them an idea of your financial situation. It will also help them give you a price estimate.
You want to make sure you choose someone available year-round, not just during tax season. Some preparers set up shop for a few months and then disappear, leaving you without assistance if you have questions after the return is filed.
A qualified tax professional should be licensed through a professional organization or have earned continuing education credits. They should offer e-filing for your tax return.
Schedule An Appointment
If you’re one of the 85 million taxpayers who pay someone else to do your taxes, it’s essential to get organized early on. Bringing receipts and other relevant documents will make the process a breeze.
A tax preparer may ask you to fill out a questionnaire or take information straight from you, but it’s always best to have some organized record on hand for the big day. It will help you get the most out of your appointment.
Your tax preparer might also show you the most relevant medical or financial forms during the meeting. They may also provide you with a slew of IRS brochures. It will be worthwhile to learn more about what the IRS offers and how it can benefit you.
Meet With Your Preparer
You must bring all the necessary documents when you meet with your preparer. It will help them prepare their taxes more efficiently and accurately.
During the interview, your preparer will inquire about your taxable income, deductible expenses, and possible allowances. They will also review tax law changes and answer any questions you have.
In addition, you should bring identification documentation such as your social security card and driver’s license or state-issued picture ID. It will ensure that you are who you say you are.
It would be best to inform your preparer about significant life events in the past year. These events could impact your tax situation in the future, and it’s helpful for your preparer to know about them now.
File Your Return
Whether you file your return or work with a professional tax preparer, you should have all the documents you need to complete your return. Getting them in order before you meet with your preparer can save time on your taxes, which means lower fees.
Organizing your tax-related paperwork can also help you determine how to itemize deductions or take the standard deduction. Keep receipts and statements for charitable donations, medical bills, work-related expenses, and investment activity handy.
If you need help deciding which filing status to choose, get advice from a tax pro or check the IRS website. Choosing the correct filing status will determine your standard deduction, how much you owe, and whether or not you qualify for any credits.