How to Keep Your Taxes Organized and in Order Throughout the Year
Monday, October 26, 2020, 6:00 AM | Leave Comment
Each year, you must submit an income tax return to the federal government, and in some cases, you may be required to submit an income tax return to your state tax agency as well.
Generally speaking, staying organized throughout the year can make it much easier to fill out required tax forms easily and accurately.
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Ask for Digital Copies of Tax Forms
Most employers, brokerages and other entities that may send you tax documents are willing to do so electronically. This is ideal because it allows you to keep all of the forms that you receive on a single server that you can access from your computer, smartphone or other device. If you use a software program to compile and send your return to the government, it may be possible to simply transfer the information from those forms to your return.
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Take Tax Planning Classes
Tax planning classes can provide greater insight into how long you should keep previous tax returns or other documents that you receive from various entities. You’ll also learn more about how to organize your tax records and what to do if you don’t obtain them in a timely manner. Finally, tax planning courses may also teach you how to take advantage of various deductions or credits that may reduce how much you owe to the government each year.
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Review Your Tax Account Regularly
The federal government allows you to request a transcript that shows how much you have paid in previous years and how much you may currently owe. You may also be able to access this transcript and other account information online. Reviewing this information on a monthly or quarterly basis can make it easier to remember when payments are due and how much you owe.
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Work with an Accountant
An accountant may be able to help you create a system for organizing tax documents and other important financial records. This person may also be able to compile and submit tax returns by their quarterly or annual deadline. In many cases, failing to file a return on time carries a steeper penalty than failing to pay what you owe on time.
Staying on top of your taxes now can save you a lot of time and money in the future. Computer software programs and financial professionals can both be valuable resources in your effort to file tax returns and pay taxes in a timely manner.
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Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.
