As we head to the end of another year, it is time to turn attention to annual tax preparation. If you have not thought about your taxes since you filed, last year, you are not alone. It is very common for individuals to dread doing their taxes. It can cause a lot of undue stress as you worry about the possibility of owing the IRS and/or the tedious process. It does not have to be this way. Here are some tips for tax preparation this year:
1. Get organized now: Gather any documents and receipts that you can, while the expenses are fresh and current. This may include documentation of your daycare expenses if you have children, mileage receipts if you travel for your job, documentation of charitable donations, personal information, income and retirement information. Put it all in a file together so that when it is time to begin, you will have a head start.
2. Make a list of anything you think may reduce the amount of your income that is taxed. This includes things like IRA contributions, interest from your student loans, contributions to a medical savings account, energy credits, educator expenses. This will help ensure that you do not overlook any potential tax savings.
3. Decide whether you need tax support: Taxes can be done by an individual, but there are times when hiring a tax professional might save you time, stress and even money in the long run. Some instances when partnering with a tax professional might be particularly advantageous include:
○ If you have made mistakes on a previous tax return.
○ If you have been contacted by the IRS about a potential audit.
○ If you have recently been through a major life event that impacts your tax status like marriage, divorce, death of a spouse or adoption.
○ If you have lived in multiple states in one year.
○ If you have bought or sold real estate.
Trusted Tax and Accounting Services in Anoka, MN
Havig Tax specializes in helping people just like you make the best possible long term tax decisions. We spend time getting to know our clients so that we can advise you on tax credit and deductions that will help offset your tax burden. We also offer accounting support and bookkeeping services and focus on the customer experience. If you are concerned about completing your taxes in the coming year and would like to speak to a member of our team, call us at 763-325-4400.