How to Prepare for Tax Season: Everything You Need to Know

Oh, taxes. The word that mustn’t be spoken. Every year, the IRS comes around to lay claim to a portion of your hard-earned finances, and you want to make sure you walk the chalk line to keep on their good side.

Although we’ve just wrapped up filing for 2021, the next round of taxes will be here before you know it. With that said, you want to make sure you prepare for tax season properly to minimize the stress and get the most out of your return.

So, what can you do to get started? This article will fill you in on what you need to know, so read on to find out more!

Keep Your Receipts

Most of us are so used to throwing away our receipts that we can do it mindlessly. This is doubly true for those who choose to have their receipts sent to their phone after each purchase.

The problem is that you could be throwing away free money that you could use to deduct your tax payments.

If you’re a startup filing tax returns, you’ll want to hold on to your receipts for tax deductions and credits. Keep any receipts that you used to purchase business items to build your company and present them to your tax preparation service when it’s time to file.

Add up the Mileage on Your Business Vehicle

If you own a small business and use your vehicle to make business moves, you’re in luck! You can include that vehicle in your calculations during your tax report.

To do this, you’ll need to add up the approximate mileage on your vehicle that you used to get you to your work destination. For example, if you used your Ford F 150 to deliver construction goods to your worksites, you’ll want to tally up the mileage that it took to get to those areas.

You’ll also want to add up how much gas you paid to get to your work destinations. Adding up the money spent on gas will give your tax agent a better idea of how much you used your vehicle for work, and could help you get a better tax break.

Have Your Business Records Organized

Whether you file a W-2, 1099, or something in-between, you’ll need to take time to organize the information about your business. Often, people go to their tax preparer with little more than a couple of pay stubs. This means they miss out on a ton of incentives and deductions.

Make sure you have records of everything you’ve done in your professional work, regardless of what your employment status may be.

Keep Tabs on Your Donations

Did you know donations are tax-deductible? It’s true. Many donations can be deducted from your taxes, which means you could be saving yourself money while helping others.

Find out which of your organizations offer deductions on taxes, and then bring those receipts to your tax preparer’s office to help yourself to some incentives.

Now You Can Prepare for Tax Season

With this list, you can prepare for tax season without a sweat. Want to find out other ways you can benefit your professional life?

Make sure to look around our site and see what great tips you find!

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