As the end of the year approaches, it’s easy to get caught up in the holiday rush. Still, setting aside a little time to organize your tax documents now to get ahead of the time crunch can save you stress heading into the new year.
Here are some simple ways to get your documents in order and tips on setting up your tax planning meeting.
Start Organizing Your Records Now
Gathering your financial documents in advance makes accessing everything you’ll need for filing easier. Here’s a list of essential documents you’ll want to collect:
- Income Statements: If you’re employed, look out for W-2s from employers or 1099 forms if you’re a contractor, freelancer, or side-hustler. Small business owners should also compile records of income and any 1099s they issued to contractors.
- Bank and Investment Statements: Have statements from bank accounts, brokerage accounts, and retirement accounts ready. These documents will help capture any dividends, interest, or gains that may be taxable.
- Receipts for Tax-Deductible Expenses: Gather receipts for deductible expenses, such as medical bills, charitable donations, and business expenses, if you’re self-employed.
- Mortgage and Real Estate Documents: Look for mortgage interest statements and property tax bills, which can often be deducted. Records related to property sales or renovations can also impact your tax situation.
If some of these documents are scattered, take a few minutes each week to gather and categorize them. By tax season, you’ll have what you need in one place.
Digital Organization Tips
Since Myrick CPA works with clients electronically, having digital versions of your documents can be a big help. Scanning paper documents and saving digital files will ensure you’re ready to upload everything to the client portal securely.
- Convert Paper to Digital: Use a scanner or your smartphone’s camera to create digital copies of paper documents. Many scanning apps let you create clear, readable PDFs that can be saved and organized by category.
- Set Up a Dedicated Folder: Create a dedicated folder on your computer or cloud storage service specifically for tax documents. Using subfolders for categories like income, expenses, and deductions can make it easier to access everything when you’re ready to file.
- Label Files Clearly: Use descriptive names, such as “W2_2023” or “CharitableDonation_2023,” to locate documents without confusion.
Schedule a Tax Planning Meeting in the New Year
Early in the new year is an ideal time to meet with your CPA for a tax planning session. This meeting can help you better understand your tax situation, discuss deductions you might be eligible for, and review any significant life or business changes that could affect your return.
During a tax planning session, topics might include:
- Reviewing Tax Deductions: Your CPA can help identify deductions and credits you qualify for, such as home office deductions, medical expense deductions, or credits for energy-efficient home improvements.
- Assessing Withholding or Estimated Payments: Adjusting withholding or estimated payments can help prevent surprises at tax time. If you have unexpected income or your income fluctuates, a CPA can help calculate what you may need to pay to avoid penalties.
- Planning for Major Changes: If you bought or sold property, started a business, or made significant investments, your CPA can help you understand how these changes will impact your taxes.
Taking time to meet with a CPA now ensures that you’re prepared for filing and that there are no missed opportunities for tax savings.
How Myrick CPA Can Help You Stay Prepared
Myrick CPA offers fully digital services, so there’s no need for in-person visits or paper copies. Using our ultra-secure client portal, you can upload all necessary records from the comfort of your home, making the filing process smooth and convenient.
Are you ready to make sure this tax season runs as smoothly as possible? Contact Myrick CPA to schedule your tax planning meeting -- and start the new year organized and prepared for a stress-free tax filing season.