When the tax filing season comes, you need to prepare and submit your tax returns on time. Learn some tips to prepare for tax filing season here.

Introduction

The IRS expects every taxpayer to submit their tax returns and pay what they owe on time. As you know, tax filing is not a simple affair and involves a lot of documentation and calculations. And that is why the IRS gives taxpayers several months to prepare and submit their tax returns. They also allow for an extension period to file taxes to ensure no taxpayer is left behind. If you don’t comply, IRS can impose heavy penalties or even take tax collection enforcement measures against you. To be on the safe side, here are some tips to ensure you are ready on the first day to file taxes.

Gather your documents

Even if you want to hire a tax preparer to prepare and submit your tax returns, you still have some work to do – gather all the documents and receipts required. You can get your W2 form with an online W2 finder to show your income and withheld taxes. If you are in business, you need bank statements and forms 1099 that show your earnings. There are various forms of 1099 such as form 1099-DIV for dividends, form 1099-INT for interest, among others. When it comes to deductions, you need to have receipts to back up your claim. Gather the receipts and determine whether to itemize your deductions or take a standard deduction.