Lone Star National Bank
What You Should Do to Get Ready for Tax Season
Jan 16, 2016
It’s that time of year many look forward to and others don’t. Yes, we’re talking about tax season. Many start noticing tax forms as they arrive in the mail from the end of January and on. While online tax software has made things easier for tax professionals, most of the burden still falls on you. Get anything wrong and you might be dealing with a financial headache later on. Getting it right the first time means more money in your savings accounts and less headaches. Follow the tips below to emerge from tax season unshaken.
Filing taxes can be one of the hardest and stressful tasks for businesses and tax preparers. If you’re having issues preparing your forms and figuring out your financial situation from the previous year, then we strongly suggest hiring a tax preparer to help make sense of the most complicated situation. Finding all of the info can be tricky, especially if your checking or savings accounts don’t give you the added convenience of Internet banking. Going paperless, viewing check images with ease and finding loan account information will be much easier and convenient.
Stay up-to-date on the latest news that could affect your tax returns. Keep in mind that changes in taxes do come frequently and affect things such as eligibility, contribution limits and state tax regulations. If you happen to be filing yourself, then it’s important to know the latest tax laws and keeping yourself informed on tax codes and IRS forms to minimize the chances of overlooking something. New laws and tax breaks are introduced every year, and it’s important to know what to claim and what’s needed to declare on your returns.
Blast from the Past
Looking back at last year’s tax return is another great option to help you know where you are compared to the previous year. Dig through your documents and look at details so that when you’re ready to file, you’ll know where to elaborate. We also recommend reviewing your personal data, such as updating marital status and working locations.
Protect Your Data
Everyone should consider the risk of tax fraud. Like it or not, scams can be committed in tax returns, and the most popular one is stealing refunds from the unsuspecting. Make sure to keep all of your info, such as your social security number and other highly sensitive information, well taken care of. If you happen to suspect something fishy in your returns or paperwork, don’t hesitate to notify the IRS.
This is the part that most dread: arranging all of your documents and preparing a tax return. Be cautious, though, you might have to do it as soon as possible to avoid the IRS’s ticking clock. The list below contains some of the forms you’ll need:
- W-2 Earning Statement
- Form 1099-MISC
- W02Gs Form
- 1098 Forms
- Schedule K-1 Form
Financial Services for Easy Returns
One of the biggest mistakes small business owners and individuals make as the tax season draws near is procrastinating. Start implementing the strategies we mentioned above as soon as you receive your tax documents in the mail. To set yourself up for success, complement your tax return process with great financial services from LSNB. Visit our bank in McAllen today to get started!