For many Americans, tax season is stressful, and anxiety-charged. The good news is, there are simple steps you can take to get ahead of the 2024 tax stress. Making quick adjustments to your everyday routines can make all the difference next April.
Personal Financial Documentation
This one feels like a given, but it also feels like a dreadful obstacle. If you’re a single filer, with no business taxes to report, this should be a simple process to implement. Keeping track of important receipts, such as those for all medical expenses, childcare expenses, unreimbursed work-related expenses, and any other documentation for large purchases – such as cars, boats, house additions, and large-scale events.
Small Businesses
If you are a SMB owner, this process should be more in-depth. Tools like QuickBooks can help you get started. All business-related expenses should be thoroughly tracked, keeping tabs on receipts, bank statements, and serial numbers for large tech purchases. If your business makes any charitable donations, those should be recorded as well. Having a digital record, maintained neatly throughout the year, ensures you won’t miss out on important tax deductions and credits come tax season.
Another important record for SMB’s to keep - mileage. This deduction is often overlooked by business owners but is an easy way to save big. For those using vehicles for work-related purposes, keep close track of your mileage using a tracking app, or maintaining an accurate logbook. Including information such as the date, miles driven, vehicle mileage and gas purchases can save you time and guesswork later.
Secure Storage
Collecting all the necessary documents and receipts throughout the year is key, but, in an era where digital data is the go-to, security is paramount. Investing in secure storage for these files is a must. There are never-ending cloud-based storage solution services such as Google Drive, Dropbox, and iCloud that can get you started. If you prefer further security, external hard drives provide safe document handling without the threat of server hacking. However, if you opt for a hard drive, ensure it is kept in a safe, dry place to avoid any loss of data.
Tax Law
Keeping a tab on various tax law changes is always a good idea, even if you are a simple single filer. Current held tax laws are always being revised and updated, and new additions happen every year. These changes can impact your deductions and expense reports throughout the year. Be sure to follow trustworthy news sources, subscribe to newsletters (we personally suggest the Forbes Tax Break newsletter), and of course, consult with a tax professional.
Find a Qualified Tax Accountant
The easiest way to minimize your stress levels next April is to hire a qualified, trustworthy accountant to handle your finances for you. Quality tax accountants stay up to date on important tax changes and can notify you of any adjustments that may impact your finances. Accountants can also assist in managing financial records, and for SMBs, ensure you never miss a quarterly filing deadline.
Goldburd & Company is proud to have served the community for over 40 years. With a team spanning generations, we are always ready to help you and yours with tax filing and financial advisory. Call us today to talk with a professional.
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