Tax time is something most people don't look forward to, as it can be a painstaking process. Below, experts at Desert Schools Federal Credit Union have offered some great tips to help you save precious time and keep your stress low during tax season.
· Get organized:
Organization is the utmost important tool to help save you time and money down the road. Mistakes, which could lead to potential audits at a later date, can be costly, both in terms of time and money. Getting organized will also help to avoid any delays in tax preparation if you’re using a service, as many bill by the hour.
· Gather important documents ahead of time:
You will need to compile all personal documents such as social security numbers, dates of birth and legal names for each person filing. Also, you will need documents related to your income such as W-2s, 1099’s and K-1's for any partnerships. Lastly, gather all of your bank and credit card statements from the last year if you will be itemizing deductions.
· Review last year’s tax return:
For most people, there are only minor changes in your taxes from year to year, but taking a peek at what you listed last year can be a helpful reminder for items like interest or dividends that are applicable to this year, as well.
· Consider hiring a professional:
While it’s nice to save a little on your filing expenses, there are several reasons why calling in a professional could be the right choice. If you’ve had a large change in income or expenses, purchased or sold a home, started or closed a business, received any significant fines in the past year, or you participate in complex investments, a professional might be the best way to go.
With a little organization and even an early start, you can save time and remain stress-free this tax season.