Tax time is a scary time for some and a joys time for others. If you are in the group that gets a refund check, I am surely happy for you. However, no matter what group you find yourself in, doing taxes is a hassle. I’m to the point where I have a trusted friend do mine. If you get flustered and frustrated during this time, you may want to get an early jump on things. Don’t wait a few weeks before the filing date to get them done. Instead, start to prepare for tax time on the first day of fall 2022.
Gather Your Documents
To fill out your tax forms, you need all your important information. If you are like me, that information is all, but together in one special place. Start collecting them and put them in a safe spot. Organize them, and file them away. If you are a business owner, make sure you are keeping important receipts and documentation of your millage if you are traveling. Keep detailed records and audit them now, before the rush of tax filing season starts.
Maximize Your Deductions
The first day of fall 2022 is also the perfect time to look at all the deductions you hope to use towards your return. Some of them have threshold limits you must meet before they are rendered. Take that time to see where you are in meeting those qualifications. If you are not close, set a plan to make sure you hit the goal. This is more in line with the deductions for charity, business expenses, and military moving expenses. Also, take stock of contributions to tax advantage accounts like IRA’s, HSA’s, and other similar accounts. Be sure to max them out or set a plan to.
Plan Ahead For Your Refund
You can also try planning ahead for the refund you may be issued after filling. If you are prone to spending it all in one place, let’s make a change. Think about your financial goals for the upcoming year. Are your savings goals in order? How’s your emergency fund and investment account looking? What needs to be fixed or replaced in your home? These are all the questions you need to consider while making a plan for those funds. Once you got a plan, write it down and place it somewhere to help you stay on track.
The first day of fall is a great time to start working on your tax return. For more tips on how you should get ready, watch the posted video and read more.
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