End of Year Tax Prep: Get Organized and Get Started

Tax season doesn’t have to be daunting. While the prospect of sorting through a year's worth of paperwork can feel overwhelming, with some preparation and organization, you can get ahead of taxes before the new year even begins.

Starting early on tax preparation is a game-changer. It's like arriving at the airport hours before your flight: it eliminates rush, reduces stress, and allows time to deal with unexpected hiccups. By getting started early, you're not just avoiding the last-minute scramble, you're also giving yourself the chance to thoroughly review your financial records. This can potentially lead to spotting deductions or credits you might have missed otherwise.

Tips for getting organized:

• Start early and begin sorting through your paperwork as soon as possible.
• Categorize your expenses. Categories could include home office expenses, business mileage, or professional development costs. If you're already using MileIQ to track your mileage, you're ahead of the game.
• Keep a record of donations. This includes both cash and non-cash donations.
• Review your payroll. Make sure that all taxes are correctly withheld.
• Stay on top of retirement contributions such as 401(k)s, IRAs, and others.
• Organize your receipts by using a folder, file, or receipts tracker app.

The more organized you are, the faster you can check “file taxes” off your list.