Tax season can be a stressful time for most people. From the multiple tax forms to the dozens of questions about your income, it can be overwhelming. In this article, we will discuss how proper tax preparation can help you stay on top of things.
At Marcus, Fairall, Bristol & Co., located in El Paso, TX, our tax services offer a wide range of assistance. Our experienced accountants can help you prepare for the tax season ahead. To schedule a consultation, call us at (915)-775-1040.
Become Prepared
Tax preparation involves organizing and filing your tax returns. You will have to gather all necessary documents and fill out the required forms before submitting anything to the IRS. Though you can file your taxes independently, to ensure everything is correct, consider working with a tax professional. Read below for a guide on how to properly prepare your taxes.
- Thoughtful Organization – Storing everything in one place is the most effective way to keep your finances organized. Donation records, bills, and bank statements should all be kept in the same, secure place.
- It will also help if you categorize your documents. Different files for your income, banking information, medical expenses, donations, and childcare receipts will help you stay even more organized.
- Keep Yearly Documents- Unless told otherwise, you should hold onto tax documents for at least three years. If you’re ever audited or need them for reference on your current return, they’ll be easy to find.
- Look Into a Savings Account- A long-term form of tax preparation is looking into a tax savings account. This account is where you will store money throughout the year to cover you if you potentially owe taxes. Preparing yourself for a possible tax bill can help save you from an unexpected hit to your finances.
- Learn to Budget- Create a budget to learn how much money goes in and out of your account each month. Listing out your income and expenses (variable and fixed) will help you stay on top of your cash flow.
- Log Records Through the Year- Though this may sound tedious, keeping records of all your expenses throughout the year will help with your tax preparation. This includes expense receipts and income documents. A tax expert can help you log this information so nothing gets missed.
- Learn Tax Laws- Deductions and tax credits can help increase your tax return or reduce the amount that you owe. If you’re unsure of what you might be eligible for, working with a tax expert can help you claim them.
Tax Preparation in El Paso
At Marcus, Fairall, Bristol & Co., our tax preparation in El Paso can help you stay on top of tax season. By working with us, we will ensure no document or deduction gets missed. If you’re interested in working with our firm, call us today to schedule a consultation at (915) 775-1040.