Preparing Documents During Tax Season

February is here, which means the filling season is fast approaching! Are your documents ready and in order? If not, it's time to get them organized now. You don't want to be scrambling at the last minute. Make sure all of your forms are up-to-date and ready to be submitted.

Whether you decide to file your taxes yourself or hire a tax expert, gathering a few documents in advance is essential. Keeping these records handy can help you complete your tax filing process more quickly. Additionally, having these documents ready can help you reduce costs if you hire a tax expert by the hour.

Have accompanying documents for:

• Personal identification details and those of any dependents you plan to claim (e.g., family members).
• Complete list of all revenue sources you earned throughout the current year.
• Any credits or deductions that you are eligible to claim.
• Details on all taxes that you have paid during the year.

Keeping your tax documents in a secure location after filing is advisable. In the event of an audit by the IRS or state tax authority, you may be asked to provide records supporting the income and tax breaks on your return. Having all the necessary documentation in one place can expedite the process, and your deductions or credits will be recovered.

Maintain precise records all year round and collect all the necessary data before filing your taxes to reduce stress during the tax season and stay organized. 

Start by gathering your documents in one place. Sort them into categories and make sure to keep them organized. Finally, double-check that everything is complete and accurate before submitting it.