Preparation Makes Tax Season a Snap!

Filing taxes as a homeowner means different deductions, different tax credits, and a different tax filing experience overall! Whether you’re new to home ownership or just need a refresher, it’s important to be educated and prepared so you can take advantage of all the opportunities and get back your biggest possible refund. As always, please consult with a tax professional with tax-related questions. Here are four things to do before April to make your tax professional’s work easier.

Organize your papers — Keeping all of your financial documentation, receipts, and relevant paperwork organized and accessible is imperative to make sure tax season goes smoothly! Detailed records are the best gift you can give your tax professional. If you don’t already have a system in place for keeping track of your paperwork, now is a good time to start.

Do some self-education — Ultimately, the only source you should trust when it comes to your taxes is your tax professional. However, that doesn’t mean you can’t read up on the available deductions to make sure you’re prepared to discuss your options when it comes time to file!

Collect past tax records — Where are your tax records from last year? How about the year before? If you aren’t quite sure, this is a great time to track them down and get them organized.

Hold onto incoming documents — This is around the time when tax documents from your workplace, your bank, and other financial institutions will start appearing in your mailbox or email inbox. Create a designated spot to store these (both digitally and physically) so that when April rolls around, you know where to find them.

For most people, owning a home is the biggest financial decision they’ll make in their entire life! It’s no wonder that home ownership has such a big impact on tax season. Your tax professional is the only one who can provide you with guidance on how to file, but by preparing your documentation early and staying organized and educated, you can make the process easier for you both!

Thanks to Sidney Stonecypher for the information! If you have any mortgage questions, you can reach her at (360) 650-5365.

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