Congratulations! Another tax day has come and gone, and once again, you got your taxes filed on time. Go ahead and breathe a sigh of relief. You’re safe until next year, right?
Maybe.
If this year’s tax preparations were stressful, you might want to take steps now to get better organized for next year. While it seems a long way off right now, a year goes by quickly. Before you know it, you’ll be scrambling to create a profit and loss statement, a balance sheet, and an itemized list of business assets to hand over to your accountant. Not to mention digging out all those receipts from the year’s purchases.
Here Are Your Next Steps
Here are a few tips from the IRS if you want to get a jump on next year’s taxes. There’s no time like the present!
Confirm your information with the IRS. View your personal tax information online to ensure that it’s complete and accurate. You can do this using the IRS portal. If you don’t have an online account with the IRS, now is the time to set one up. Once that’s done, you’ll have access to information that may come in handy when preparing your taxes next year.
Examples of what you’ll be able to see online include:
- Data from your most recent tax return
- Any balance you owe the IRS
- Payments you’ve made (you can also make a payment from here)
- Authorization requests from tax professionals
- IRS notices that pertain to you
- Communication preferences
Make sure your ITIN is valid. Taxpayers who don’t qualify for a social security number need an individual taxpayer identification number (ITIN). These numbers expire periodically, so make sure yours is valid through 2022. If not, this is the time to submit a renewal application.
Check your withholding amount. If you work for an employer and are expecting a hefty refund this year, you may be having too much money withheld from your paycheck. Likewise, if you have to pay a substantial amount in taxes, you may not be withholding enough. True this up, and make adjustments so you’re on target for next year.
If you’re self-employed (a freelancer, consultant, or business owner), this is the time to determine how much you’ll need to pay each quarter this year to avoid penalties when you file your taxes next year. Your accountant can help you calculate this.
Set up a filing system. One of the best tasks to spend time on right now is setting up a good filing system so that during the year, you can file important documents and receipts as you go. This prevents paper from piling up in the office and helps you avoid that last-minute flurry of activity when your accountant asks you for a missing piece of information.
There are several good bookkeeping software systems on the market today. QuickBooks Online is one that many small business owners choose because it’s easy to use. Independent bookkeepers are also available to help you get organized.
Adams Accounting Solutions Can Help You Stay On Track
If you have questions about steps you can take now to stay on track for next year’s tax preparation, give Adams Accounting Solutions a call. We specialize in all aspects of individual and small business tax preparation. We’ll help you get systems in place to make tax day next year less stressful. Schedule an appointment today!
