Annually many taxpayers gather up all their receipts, tax forms, and questions and haul them to the tax preparer to turn them into State and Federal tax returns. However, there is often a lot of confusion on how to best accumulate this information to make the process as smooth as possible. Also, the more efficient the process, the cheaper the preparation fees. In this episode I give some suggestions on how to accumulate and provide the information in a way that will make it faster and easier for the preparer.
I provide some ideas on how to organize your tax forms. I prepare explanations on what self-employment tax is and how it is calculated. I explain the methods and required documentation for deducting vehicle expenses for a small business. I give some ideas on information that should accompany your tax forms that you can provide for the preparer instead of pay them to get it themselves. I also try to explain the different ways tax preparers bill for their services and what you can do to lower your fees.
Just like Christmas is just around the corner, tax season is lurking just beyond there. So what better time than now to start thinking about making it the easiest one of your life. Thanks to all and good luck!