Tax Record Tips to Make Your Life Easier
Completing all of your tax paperwork each year can be a stressful task. That’s why it is it’s vital to keep your tax records in order throughout the year. Documenting all your tax obligations, potential tax credits or deductions, and any necessary paperwork will ensure your tax records are in tip-top shape for Tax Day.
So, what are your tax record options to prepare for tax season? Keep reading to find out.
Keep Documents You Need
The most important aspect of completing your taxes is the need to have all your necessary documents together. Here are the key types of documents you’ll want to find, collect, and keep in a single and safe location:
- Employment-related forms like your W2 and paystubs
- Receipts that may be necessary for tax deductions and credits, such as medical expenses, charitable donations, and more
- Documentation for your property, including home purchase contracts, insurance records, and mortgages
- Bank statements and investment documentation to keep track of your gains, losses, and interest earned
- Any business documentation, including sales and invoices, if you run your own business
Finding all of these documents at the end of the year can be overwhelming. It’s important to start keeping your accurate tax records together now, so you’ll be prepared for tax season.
Utilize Tools and Services Created to Assist You
Keeping the right documents all in one place is just the first step towards success. The next step is to categorize and track the records using tax-related software packages to scan, document, and track these inputs as they come in. Also, using an Excel spreadsheet or paper and pencil via your checkbook works just as well.
NJ Tax Planning & Preparation for Individuals, Companies, Trusts, and More
Do you need help with tax planning and preparation? Tobin and Collins is here to help. Our tax consultants are ready and able to assist you in preparing for a smooth and orderly Tax Day. Contact us to get started today!