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Why It’s Important to Regulary Prepare for Tax Season in 2022

by | 14 July, 2022 | Blog

It is no surprise that tax season can be a burden to most, but as with most things the way to pay taxes easily in NY is to prepare beforehand.

On that note, knowing why tax season is so important can give you the motivation to start compiling all of your W-2 and 1099 forms.

By working with tax preparation services in NY, you will be able to better determine how much money you are owed—or conversely, how much money you owe. It also goes without saying that starting early gives you more time to prepare all your documents, thereby avoiding any last-minute stress

Keep reading to find out how you can get yourself prepared for tax season.

Set Deadlines for Your NY Taxes

Keeping a calendar is the main tip to keep in mind when it comes to figuring out how to pay taxes in NY.

If you choose to file all your taxes in one go, having a set deadline is even more important; the last thing you want is to be scrambling for documents the day before the deadline.

However, those who choose to pay in installments should also be aware of deadlines and any grace periods. A tax prep company in NY can help you navigate these two options to figure out what is best for you.

Update Your Files Regularly

Instead of waiting a month before tax season to start looking at your bills and assessing your finances, you may want to consider making this process a part of your regular routine.

Make it a point to sit down every week (or every two weeks, depending on your schedule) to log all of your receipts and allocate your budget accordingly. Updating your log book also serves as a backup for all your receipts.

If you are someone who relies on a software or application to log your taxes, make sure that it is always updated. Some tax software solutions give you the option to upload files, and so keeping the program updated minimizes the risk that such files get damaged or lost entirely.

Keep Business and Personal NY Accounts Separate

On the subject of updating your records, make sure you’re separating your personal and business financial documents. If you haven’t already, make sure you have distinct credit cards, checks, and accounting software. Never use personal funds to cover business expenses, and vice versa.

Make sure to double and triple-check these accounts if you’re unsure about how to pay taxes in NY. Even the smallest discrepancy in either of these accounts can land you in hot water.

Maintain Open Communication With Your Consultant

If you are someone who works with a tax prep company in NY, it is important that you be upfront about any concerns you may have.

If you run a business in New York, questions about your taxes should be written down and brought to your accountant.

Your accountant can ensure that your company is headed in the right direction financially. They may provide you with advice on how to record your company’s finances and what documents you might need. No question is too small; it is important that you fully understand the filing process when preparing for tax season.

Outline Possible Deductions

While collecting all your bank statements and receipts, remember that you may be eligible for deductions. These can add up over time and result in huge savings depending on how diligent you are when filing for these deductions.

Make sure you have all of the supporting documents and receipts for any deductions or credits you intend to claim. This could apply to things like business expenses, charitable contributions, or medical costs.

Get Prepped for Tax Season With Us

When it comes to tax season, you want to ensure that you are consulting trusted professionals who can help you keep all your documents in track.

Our team in Melanin Tax is aware that filing taxes in New York, whether for personal or corporate purposes, can be challenging. That is why our tax preparation services NY include tax planning, bookkeeping, and notary services.

If you have any questions or are ready to start prepping your taxes, reach out to us at (347) 943-6772.