How to Prepare for Tax Season

Tax Return

February has barely passed, yet it’s already time to think about your taxes. April is not far ahead, so planning earlier is better than making plans later. Whether you are a newbie or a seasoned veteran in planning taxes, you may still want to consider getting tax services in Kearny, NJ from professionals such as Nicholas J. Coco.

Millions of taxpayers pay for professionals to complete and submit their tax returns for them. If you are among those millions of people, then it is very important to prepare and organize your forms, receipts, and other documents before tax time.

Preparing for Tax Season

If you’re a beginner and want to understand your taxes better, you may want to consider getting professional accounting services in Kearny, NJ. They could help answer the questions you have in mind. But before you do, here are some steps you can follow to help you prepare what you need.

  1.   Tax Preparer

If you think you can’t handle preparing your taxes on your own, that’s fine as you can take your time finding a professional tax preparer. Be sure that the person you find has a valid Preparer Tax Identification Number (PTIN), as this will indicate that they are authorized to file federal tax returns on behalf of others.

  1.   Set an Appointment

The sooner you set an appointment with your chosen tax preparer, the quicker you’ll be able to complete your taxes even if there’s an extension. If you are anticipating a refund, you’ll be able to get that sooner too.

  1.   Organize Your Documents

Gather all the tax documents that you have received from your employers, as well as from banks, firms, and others with whom you did business before the end of January. Also, make sure that the information on each form matches your records.

Here are the most common forms:

  •       Form W-2 if you’re employed or formerly employed.
  •       Form 1099-DIV for dividends.
  •       Form 1099-INT for interest.
  •       Form 1099-MISC for non-employee compensation that is paid to independent contractors.
  •       Form 1098 for any mortgage interest you paid.
  •       Form W-2G for gambling winnings.
  1. Extension

If you need more time to complete all the needed requirements, you may request an extension. Taxes sometimes end up being more complex than expected. However, you’ll still need to pay the taxes you owe before the deadline.

  1. Planning for Any Refund

You have several options to choose from if you are expecting a tax refund, you may either:

  • Apply some or all of your refund towards your taxes for next year.
  • The government can deposit the refund directly to your bank account or they would mail you a paper check.
  • You can contribute some of your refunds to accounts such as education saving accounts, IRAs, and health saving accounts.

Also, by completing form 8888, you can split your refund among your deposit choices. Let your tax preparer know what you are planning on doing so they could indicate it on your return.

Whether you are doing your taxes on your own or hiring a professional to handle it, organizing all your records in advance will help you save a lot of time and money. The earlier you start, the more things will go smoothly.

If you are looking for a professional that can handle both tax and accounting services in Kearny, NJ, then you are lucky as Nicholas J. Coco is the best candidate for the job.