Tax season might seem luxuriously far away, but it will be here before you know it. Before the IRS begins accepting returns, it’s a good idea to audit your own situation and take action now, if needed.
Preparing now means completing your taxes will be much easier and faster later. The earlier you file, the earlier you get your refund (if you’re eligible for one) — and the sooner you can use that money to pay down debt, bolster your savings, or buy that TV you’ve been eyeing for months.
Figuring out how to prepare taxes and staying ahead of any potential issues can save you time when you’re ready to submit your return.
1.) Get Organized
2.) Think Now About Extensions Beyond the April 17, 2018 Filing Deadline;
3.) Review Your W-4 and Adjust Your Withholdings;
4.) Research Tax Preparers and Services – Tax planning and tax preparation are not the same thing and not everyone provides both services;
5.) Check for Deductions and Make a File with Needed Documents (see #1);
6.) Start Saving or at least don’t be shocked by the fee to prepare your taxes – the national average for a basic tax return (1040A and state return) is $176 and the cost goes up for more complex returns: Itemized 1040 with Schedule A and one state return is $273 (national average) and $457 for itemized 1040 with Schedule C Business Income or Capital Gains. Other schedules and other state tax returns will likely increase the fee.