Tips to Get Ready for the 2012 Tax Season

A taxpayer seeking to avoid a hectic few weeks in April will begin preparing for the tax season months before it actually arrives. If you are not good at planning ahead, here are some useful tips to help you get going:

• Stop procrastinating - Many people procrastinate when it comes to taxes because they think they have plenty of time before tax season. Unfortunately, this is rarely the case. The single best way to ensure you are receiving every credit and deduction for which you are eligible is to be organized and not wait until the last minute to find all your tax documents. In a word, stop procrastinating.

• Go through your past returns - Reviewing your past returns can help you prepare for the tax season in 2012. This exercise can help you spot items that your may have forgotten about and can help you formulate questions you may want to ask you tax preparer.

•  Prepare a folder of important documents, statements, and receipts - It is a good idea to keep a folder of important tax documents. You never know if or when you are going to be audited and these documents can be a lifesaver if this unfortunate event occurs. We at Tax In-House offer an online file cabinet so that you can store these documents online rather than at your home. 

• Try to not get too stressed - Taxes are a necessary evil. They are bound to cause some stress as, by definition, they involve the government taking some of your money. However, remember, the IRS is not out to get you (unless you’re committing fraud or ignoring your taxpayer responsibilities). If the stress gets too great you can always hire a tax professional to take care of your taxes for you

• Hire a tax specialist or professional - For many, the entire tax preparation process is overly complex and uninspiring. Often, the expense of hiring a tax professional is worth every penny in headache avoided. A tax professional will let you know what documents they need and where you can go to get these documents. They will ensure you are receiving every credit and deduction for which you are eligible and will ensure your taxes are filed on time. With a tax professional you can have confidence that you are paying the lowest tax burden that is legally possible.

Follow these tips and your 2012 tax season should run a little smoother than in years past. Good luck!

Tax In-House is a tax 2.0 company. We provide tax and accounting services to individuals, the self employed and small businesses. We can be reached at (404) 537-3000, or online.