It’s mid February so we’re well into tax season and it’s safe to say that many haven’t yet filed their tax returns because they dread the process. The thing that makes it so time consuming is that people are not prepared prior to tax season, so the organizing that could be done during the course of the year has to be done all at once, which is not pleasant at all.
If you’re one of those people who hasn’t filed yet because you’re still pulling all of your info together, take the necessary steps to get your records together so that your return can be prepared. Start with your income. Since W2 and 1099 forms are out. If you’re expecting a 1099 it should be in your hand by the date of this post. (February 15th) If you have any additional sources of income and you can’t find the statements, consider contacting the source for the details instead of looking for the information in your piles of paper.
Next, look at your expenses. What are they and do you have all of the information? If not, connect with the sources and get what you need to get your return filed. You may even be able to obtain the information via phone and ask for statements to be sent to you for your records. If you do this, be sure to file the statements once you receive them.
If you’re looking for receipts, try reviewing your bank statements if you used your debit card for transactions or your credit card statement if you used that for purchases.
These are just a few steps that will help you cut to the chase and get your return filed by the April 15th deadline instead of filing for an extension and taking the chance of owing penalties. Although these steps will help, it’s not the ideal way that you want to use for preparing to file your taxes. Tax preparation is something that takes place over the course of the entire year with systems and new habits in place. If things are in place to record your information, you’ll be all set once it comes time to file.