11:50 22 March 2013
If you haven’t already filed your taxes for 2012, there is still time to take steps to prepare and get organized so that you get a better return this year. If you’ve already filed them, now is the perfect time to get a jump on next year!
The right preparation can save you thousands of pounds in taxes each year, so don’t take it lightly. It’s never too early to start preparing for tax returns of next year.
Here are three steps to help you prepare for tax season:
1. The key to being prepared for every tax season is good record keeping and strategic planning at the beginning of the year. If you haven’t already done so, keep a file where all your receipts and documents are categorized and stored for easy access at year’s end. You will find that this greatly simplifies the process and reduces undue stress and strain.
2. Have a plan. At the start of each year you should develop a tax strategy that will help you optimize tax saving opportunities. Have a strategy for maximizing gifting and charitable giving limits. Know what changes in the law will be in effect and how those changes will affect your tax bill.
3. Hire a tax professional to review your end of year finances and to help you develop a plan that fits your particular situation. They will be able to assist you with finding ways that will save you money throughout the year and reduce your tax bill at the end of the year.
However, don’t just leave it in their hands and trust them with every detail. Make sure that you become educated in the process so that you understand what is being done and why.
There’s really not a lot about taxes that people will actually find to be enjoyable. But as you discover ways to consistently lower your taxes year after year, it will at least become a much more bearable time of year than it has been.
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