Are you ready to file your tax returns this year? Tax season is a few months away, but there’s no need to wait until the last minute. Following are some useful tax planning tips to help you get started with filing taxes in 2019.
Itemized or Standardized Deduction?
When taking your deduction, you can either take the standard deduction or an itemized deduction. Thanks to the new tax plan, the standard deduction is going to be a lot higher this year. For individuals, it’s $12,000, while for married couples, it’s $24,000. However, some people may still find that they will get a larger deduction by itemizing it.
Make Sure You Are Up to Date On Forms
Some forms will be different this year. For example, if you’ve always filed your taxes on a 1040A or 1040EZ form, you will now find that these forms no longer exist. Instead, everyone will use a simpler version of the 1040 form, which the IRS hopes will make filing taxes easier.
Get All Your Documents Ready
Make sure that you have all of your documents ready. You also need to make sure that you have accounted for all of your income and expenses. If you are a freelancer or you are self-employed, make sure that you have received all of your 1099s before you file your taxes.
Take Full Advantage of Deductions and Credits
If you are going to take an itemized deduction, make sure that you are taking full advantage of it. This includes charitable donations. Other credits can include child and dependent care credits, mortgage interest, state and local taxes, and medical expenses.
Get Professional Help
Get a tax professional to help you plan your taxes. Doing it alone leaves room for errors and filing mistakes. Contact us today for more information.
