5 Tax Tips You Need to Know for This Tax Season

Insurance agent presentation and consultations with a lawyer or insurance agent. Law and insurance.

Tax season will be here before we know it and this is the perfect time to get a head start and begin preparing. It’s important to pay your taxes on time to save money and avoid paying tax penalties. Here are a few tax tips you should follow to plan for the upcoming tax season to make the process easier.

5 Helpful Tax Tips

1.     Organize Important Tax Forms

Gathering all your important tax documents should be the first step you take. Deciphering which documents you’ll need in order to file your taxes can get confusing, that’s why printing a tax checklist beforehand can help take some of the guessing away. A few of the forms and documents that would be included on this checklist include:

  • W-2 Form
  • 1099 Form
  • Receipts from the past year
  • Mortgage interest statements
  • Documents of what you paid for any stocks you have sold

2.     Review All Forms

Make sure to double-check all your forms. It’s common to make errors and miss sections when filling out these documents. Having incorrect information on your tax forms can cause delays and lead to penalties. If you need more help, the IRS website has more information on where you can get these forms.

3.     File and Pay on Time

It’s important that you stay on top of tax due dates to make sure you don’t miss filing and late-filing penalties. Taxes need to be filed by April 15, 2021 to avoid consequences, but if you have an extension the filing deadline is October 15, 2021.

4.     Itemize your Tax Deductions

Everybody wants to save money when it comes to taxes. One way to achieve this is by itemizing your standard tax deductions, especially if you are self-employed, live in a high-tax area, or own a home. This tax tip is worth following if your qualified expenses the 2020 standard deduction.

5.     Decide if you Need Help

Finally, the most important tax tip is deciding if you’re overwhelmed or not sure where to start. If so, consider hiring an accountant to assist you throughout the process. A tax professional will make sure all your forms are completed correctly and submitted before the deadline.

Looking for qualified and experienced accountants that can guide you through this tax season? The accounting professionals at Calabrese & Associates, P.C., are exactly what you need. Visit our website today to get started.