The 2014 tax season is just around the corner, and before long people will be breaking out tax software and receipts galore. Are you ready for this year’s tax season? Here are some tips to prepare you for the tax frenzy to come.
Get organized. When you organize your documents before preparing your taxes, you decrease your chances of making mistakes, and more importantly, you’ll be less likely to tear your hair out in frustration. Break out the shoe box and organize those receipts, invoices, and other records in the order of your choice. If you don’t have a document organization system, try this helpful one from About.com.
Check for new stuff. The rules for taxes can change from year to year. In fact it happens so often that entire professions are dedicated to keeping up with these changes. So to avoid any unpleasant surprises, stay on top of tax rules for 2014. You should also note that next year’s tax season will not start until January 28th due to the 2013 government closure.
Defer or Accelerate Deductions. If you are a small business or independent contractor, then deferring or accelerating deductions can make a difference in your amount of taxable income for the year. You can wait to bill clients until next year to reduce this year’s income, or spend money on deductible items in 2013 so that you can add them to the year’s tax forms.
Do it early. The IRS estimates that about 10.5 million people file for tax extensions each year. Avoid the extra paperwork by getting started on your taxes early. Besides, with the delayed start of the tax season, you don’t really have any excuse now do you? If the very thought of preparing this year’s taxes makes you want to curl up into the fetal position, don’t be afraid to ask for professional help. A CPA is just the person to help you get the job done. Just don’t put it off until the last minute, which will cause you even more anxiety in the long run.