It’s that time of the year again! Are you ready for tax season in New York?
Preparation for tax season usually intensifies during the first quarter of the year. There’s a lot of paperwork to create a return that is accurate and doesn’t hold any financial surprises. By planning early, you can stay on top of the paperwork that comes in the early part of the tax year.
Don’t worry if you’re feeling overwhelmed. We’ll help you get a headstart! Here are some NY tax preparation tips to follow.
Select a tax preparer
First on our list of tax prep tips is selecting a tax preparer.
If you don’t have a tax preparer, a good way to find one is to ask friends and advisors (such as a tax attorney in New York) for referrals. Make sure to check that the person you choose has a preparer tax identification number (PTIN) showing they are authorized to prepare federal income tax returns in New York.
Once you have chosen a tax preparer, schedule an appointment as soon as you can. This makes sure that even if you file for an extension, you’ll be able to complete your return sooner. If you anticipate a refund, you’ll get that sooner, too.
It is recommended that you meet with them at least six months before tax season or at least once a quarter for the self-employed.
Organize your documents
Next on the list is to prepare all your New York documents. This includes all the tax documents you need from your employer or employers as well as from banks, brokerage firms, and others with whom you do business. Check each form’s information if it matches your own records.
It is also a good idea to save everything from the year—even those documents that you think are not so important. There are a vast amount of deductions, exclusions, and exemptions available to taxpayers. These documents will create conversations and can result in either great tax planning for the following year or in tax savings that yield a higher refund.
Gather your receipts
Another tip on the list is to gather all your receipts from doing business in New York.
The receipts you’ll need would depend on whether you itemize your deductions or claim the standard deduction. Of course, you’ll want to choose whichever produces the bigger write-off, but the only way to know for sure is to add up your itemized deductions and compare the result with your standard deduction.
In addition, look for receipts for medical costs not covered by insurance or reimbursed by any other health plan, property taxes, and investment-related expenses. These are all subject to limits, but if they’re substantial enough, it could be worth the time to itemize.
List your personal information
Since you already know your Social Security number (SSN), also take note of the Social Security numbers of each dependent you claim in New York along with any other information your tax preparer is likely to need.
Some examples include the addresses of your vacation home or rental property and the details of your recent property sale (such as the dates you bought and sold it, the amount you originally paid for it, and how much you received from the sale.)
Decide whether you need to file for an extension
Since there are a lot of things to prepare in filing your taxes, you can request for an extension.
However, you’ll still have to estimate the amount of tax you owe and pay that amount by the regular deadline to avoid penalties and interest.
To ease the process, it would be wise to avail of tax preparation services in NY.
Start preparing your NY taxes easily with Melanin Tax!
Melanin Tax is a tax prep company in NY that provides quality services to our clients. We have a team of experienced and certified tax professionals who are dedicated to helping our clients get the most out of their tax returns.
Contact us today so we could help you start your tax prep as soon as possible!