It’s the end of the year and while for many the end of the year means holiday shopping, dwelling bank accounts, and lots of family time for others its the knowledge that tax season is pretty much around the corner.
I know what you are thinking, its December 19th..why would I care about Tax Season? Well, we at ProSolutions want to make sure everyone is fully organized BEFORE the April deadline.
Here are list of tips that ProSolutions has to offer.
1. Review last year’s tax return — and use what you learn to maximize your 2012 return
A thorough review of your 2011 tax return potentially could identify some overlooked deductions or credits that might reduce your overall tax liability, taxable income not reported, or errors that would require the submission of an amended tax return. Additionally, if you find any overlooked deductions, credits, or errors during a review of your 2011 taxes, be sure to correct these oversights as you prepare your 2012 tax returns. Don’t miss out on money that’s owed to you two years in a row.
2. Claim all eligible deductions
Did you take the standard deduction versus itemizing deductions? Choosing to take the standard deduction is the easiest route when it comes to tax preparation. However, is convenience worth possibly paying more in taxes than necessary? Or perhaps you thought you didn’t have the necessary qualifying expenses to itemize.
Whether to itemize deductions on your tax return depends on how much you spent on certain tax-deductible expenses. If the total amount spent on qualifying medical care, charitable contributions, taxes, student loan interest, miscellaneous deductions, mortgage interest, or casualty losses is more than your standard deduction, you usually can decrease your tax liability by itemizing
Last but not least,
Before you get started, it helps to gather all important tax documents into one location. This may be simple if you are already an organizational fanatic. If you aren’t, then now is the time to gather all your important documents and develop a system that works for you. Designating file folders or large envelopes for each specific topic is just one of many options.
Devote one afternoon to doing this now, and save yourself the headache of frantically searching for the records at the last minute. The IRS provides guidance on the types of records to keep, including records related to income, expenses, your home and your investments.
If you do not want to deal with the IRS, let ProSolutions help!
If you need help organizing your financials visit http://www.yourprosolutions.org and simply email us.
Happy Holidays 🙂