How You Can Prepare For Tax Season: Now!
Tax season is stressful for many people. Luck for you, Hoods has four tips on how you can begin preparing now!
Find your Forms!
One of the most daunting aspects of tax season is figuring out what forms you need and where they are. If you begin preparing those forms and learning which you will need for your taxes now, it will be easier when you go to fill them out during tax season. If you are unsure of the forms you should use, consult a Hoods staff member!
Storing all the information you will need come tax season is an element you can control now! Organizing receipts, tax returns, and charitable donations can help relieve stress when you need to gather information during tax season. Have a filing system in place for each so you can easily grab the documents you need!
In order to ensure your taxes are filed correctly, you may want to consider having someone do them for you. If this is the case, putting some money aside in order to pay for those services is a good tip.
Check how much you are putting in your 401(k)!
Making sure you are utilizing your retirement account to the fullest extent is important. While the deposit cap for a year is $18,000, if you are over the age of 50 you can add up to an additional $6,000. Summer marks the halfway point of the year. Check your 401(k) amount and see if you have deposited half of the overall yearly cap. If you have, you are on the right track. If not, it may be beneficial for you to get it to the halfway point. Then, set a steady goal for the second half of the year. This will save you from having to deposit a large sum during tax season in order to take advantage of the amount cap.
If you have any questions or concerns regarding your taxes or how to prepare for them, Hoods is always here to help! Contact us for assistance!
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