Tax season is here! Here are some tips to prepare your tax information for this tax season.
1. Evaluate Your 2017 Returns. Reviews of your previous tax return. Remember important details and changes they may have occurred during the past year, especially marital status, child adoption cases and work location. Any changes on this information can change your tax return.
2. Organize Your Files. It’s important to organize the necessary documents that you have, especially the ones you’ll be receiving such as:
- Form 1099-MISC
- W-2 earning statements
- Form 1095-A
- W-2Gs Form
- 1098 Forms
- Schedule K-1 Form
Also check your inventory products to be sold before the year ends, you want to monitor costs in factors such as labor, raw materials, etc. You should also organize your receipts, which are important especially when it comes to standardized deductions.
Review your books for any unreconciled transactions, so that they can be easily explained to your tax preparer.
3. Hire A Tax Preparer. If you think that there’s a problem with your books, or you’re having difficulties in preparing the documents that you need, then it is highly recommended that you hire someone who can help you fix any kinds of tax dilemmas.
4. Justify Your Expenses. If ever you’re running a startup business, it’s best recommended that if you want to claim items as business expenses, then you need to justify this with the IRS.
5. Stay Updated with Tax Laws and Deadlines. Stay updated with the latest tax news, especially changes in tax laws that may or may soon affect your tax return. These involve factors such as state tax regulations, eligibility as well as limits in contribution.