Once you make it through January and start to get your tax documents in the mail, it means that it is officially tax season and time to think about and prepare your taxes for the previous year. When it comes to completing your taxes in a timely manner, there are a few tasks that you should be taking care of in February or the beginning of March so you can file your taxes by the deadline.

Collect All Tax Forms in One Central Area

First, collect all your tax forms in one central area. As your tax forms are sent to you in the mail, have one place where you put them. Perhaps you have a folder that you keep by the door that you put all your tax documents in. Or maybe you have a special place on your desk for all your tax papers.

You want to make sure you keep everything together, from your W-4 to your mortgage interest papers and your health insurance tax information. You don't want to have to go digging through various pipes of mail trying to find that form about your mortgage interest on the evening of April 14^th.

If you are sent any tax documents digitally, print them out and add them to your paper files. You can also scan all your paper tax documents and create one digital file with all your tax information.

Don't Forget About Deductions

Make sure you have all the information you need for any deductions that you may qualify for. Print out your credit card and debit card statements, and review them for any purchase that you may take a deduction for.

Take the time to figure out if you want to itemize your deductions, or if you are okay just taking the standardized deduction. With the standard deduction now so big, this is an option many people choose.

Review Your Previous Tax Fillings

Pull out your tax returns from last year. Look over what financial information you included in your taxes, and determine if you will be making the same type of claims on your taxes this year. By looking at your taxes, you may find that there is information and deductions that you have forgotten about and need to collect information on.

Make Sure Your IRA Is Funded

Finally, make sure you have fully funded your IRA account. You can fund an IRA account up until the tax filing deadline, allowing you to stock away that extra money and save it from being taxed as income for the past year. If you are self-employed, the same holds for your SEP IRA.

Get ready for this year's tax season by gathering all your information together in one place, including information for deductions and tax credits. Look over your previous tax filing to make sure you are not missing any information you need for this year, and if you have the money, remember you can fully fund your IRA up until the tax deadline. Contact a professional, like those at Hough & Co CPA, to learn more.

Share