Updated: Mar 15, 2020
Taxes are confusing yes, but that doesn't mean we can skip the deadlines! I have created a foolproof process for those of you who need step-by-step guidance. Getting taxes done early not only relieves the stress of finding documents at the last minute, but it also means getting a possible refund sooner! Win/win, right?!
Follow the below list on "how to". Additionally, I have provided a document "tax organizer" for you to begin filling out, all tax-related as information should go together as soon as it is received. To view the tax organizer, hover your mouse over "Blog" and a the tax organizer will be on the drop down menu.
If you are in need of a CPA, please don't hesitate to reach out, I have ample connections in the accounting profession that I would be happy to pass along to clients.
Here’s how to do it:
1. Make Space, and Sort All Your Paperwork.
First you need to pull out all the documents and receipts that are related to your tax return this year.
2. Put your documents in the same order of your tax return.
Attached is a tax organizer you can fill in or follow when preparing your return if the form looks every more confusing than last year.
3. Speaking of last year, pull out last year’s tax return and its supporting documents, and review them.
Ask yourself if anything significant has changed over the past 12 months; major life events such as job changes, real estate sales, or marriage would be qualified as a major, so make sure you collect the supporting documents for those life events.
4. Set Up the System for Next Year.
As you collect items that would be important for next year (e.g., you sold a house), put those papers aside and label them “Year 20XX Taxes”. Create a list or spreadsheet of the documents you know you will need next year and use that as a starting point as they come in next year.
5. You should be good to go for filing now at this point.
If you use a CPA they will greatly appreciate all your efforts in organizing your papers. If you are filing with Turbo Tax or another program, make sure to follow their steps closely. If you are in need of a CPA, please feel free to reach out as I have many connections in the accounting world.