If you’re not excited about tax season’s arrival, you’re not alone. 75% of Americans are bothered by the complexity of our tax system, which is why many entrust the services of a tax accountant when it’s time to finalize their taxes.
As you prepare to visit your tax accountant, here are some tips for getting the most of your tax experience for both you and your accountant.
1. Don’t Procrastinate
Sure, you don’t have to submit your taxes until April 15th, but procrastinating until the last minute is a sure-fire way to heap unnecessary stress on both you and your accountant. Employers are mandated to release your W2 by January 31, so you have plenty of time to get your documents together for your tax accountant well ahead of the April 15th deadline.
Not only will getting your taxes done early please your accountant, but people who file their taxes by the end of February receive larger refunds than those filing after. The more time you and your accountant have to claim all of your eligible deductions, the better your refund will be.
2. Stay Organized Throughout the Year
It’s stressful to frantically try and assemble all your relevant tax documents at the last minute. Avoid the stress and keep your records organized throughout the year. Dedicate a binder or a folder to house your tax documents. Not sure what you should be saving?
It’s always better to end up saving a document that you don’t need, then realizing you threw out a document that you do need for a deduction. Here are some of the records that could increase the deductions on your return:
- Business receipts
- Medical expenses
- Health care coverage confirmation
- Additional income
- Property taxes
- Rental property income
- Education costs
- Childcare costs
- Charitable donations
- Moving expenses
- Home office receipts
To get a complete list of which records you should be holding onto, ask your accountant.
3. Be Transparent
Your tax accountant works on your behalf. If you’re not transparent and honest with your accountant, he or she will not be able to provide you with the best advice. The deeper their understanding is of your financial situation, the more comprehensive they can be in handling your taxes.
Never hide pertinent information from your accountant. If they don’t have a complete picture of your financial situation, you open yourself up to potential legal consequences from the IRS. It’s better to address a situation with your accountant before you file, then try to explain it later when the IRS starts asking your questions.
4. Ask Questions
Our tax system is complicated and often confusing. Take advantage of your accountant’s vast tax expertise by asking them questions. Not only will learning help you prepare for tax season throughout the year, but your accountant will enjoy your engagement.
Your accountant wants to provide you with the best customer experience, and if you hold back on a question and quietly leave without understanding something, you won’t be getting the best experience. If you don’t understand a specific element of your taxes, don’t be afraid to ask.
Contact Veritas Recruiting Group to start growing your finance and accounting career.