If you’re among the many Americans that deferred their tax filing deadline this year, you may be in the throws of getting ready for your tax appointment. And while advance preparation is a good thing, knowing what to bring, and what to prepare, is better.
Below are just a few of the things that CPAs wish their clients knew in advance of a tax appointment.
Know what your questions are (and when to ask them)
Do you have questions about your 401(k) contributions and how to use them to minimize your tax liability? Or, are you an independent contractor who is leaning toward setting up an S Corporation? Perhaps you’re thinking about borrowing money from your 401(k) to invest in a rental property. All of these things are good (and appropriate) to address with your CPA.
Since it’s later in the year (ie: it’s not March-mid-April), your CPA should have time to answer your questions and address your concerns. However, if you try to call them during the “crunch time” of tax season— you’re unlikely to get an immediate answer.
It’s also worth noting that making big changes to your withholding (and/or setting up that S Corp) in March, won’t have any impact on the current year’s tax filing. However, getting your finances in order now, as opposed to later, can have a positive impact on next year’s filing.
Spreadsheets are good- shoe-boxes of receipts are not
One woman we spoke with recalled a story her former accountant told her- that involved a client showing up for their tax appointment with a shoe-box full of receipts. He was proud that he held onto everything that he thought could be tax deductible, she said, but he wasn’t the least bit organized. “My accountant told me her jaw almost hit the floor when he plopped that box on her desk,” she said. “She also reiterated how much she appreciated my being so organized. I keep my receipts, but once a month I add the expenses into a large spreadsheet. The spreadsheet makes my accountant’s life easier, and doing it this way helps me breakout expenses month by month- so if I do need one of those receipts later, I know exactly where to find it.”
Have questions? Call Hughes Snell & Co., PA today to get started
Regardless as to whether you need help preparing your 2019 taxes or you have questions about how to maximize your deductions once it’s time to file your 2020 taxes, we can help. Call our office today at 239-939-2233 to schedule a complimentary consultation.