Tax season is fast approaching and with it comes all of the stress and pressure of making sure that you have everything that you need to get your taxes in on time. It sometimes seems like there are endless documents that need to be submitted to remain IRS compliant but going at it with a plan for how to get through tax season with minimal stress and cost can help give you peace of mind for the upcoming months. When you break everything down into categories and subcategories, even filling out complex legal documents can feel much less overwhelming.
The best way to go about setting yourself up for success this tax season and everyone after is to create a comprehensive tax plan for yourself with detailed checklists for each different section of tax forms that you will have to fill out.
Once you have a plan and a working list, completing your tax forms becomes simple. The hardest part of the process is typically setting up your tax planning system. There are several options for affordable tax planning software or plenty of templates you can find online. The most important factor to consider when setting up your tax planning system is that you use a system that you are comfortable using and you trust to help you stay compliant.
What is a Tax Plan?
Tax planning can include several different elements of preparation and implementation but it all revolves around the central task of analyzing your financial situation and creating a detailed plan for getting you the best return on your income taxes. This might look like including as many business deductions as possible so that you are minimalizing how much is owed at the end of the day or it could look like finding you as many personal credits to maximize your return. There are a thousand different outcomes that you might be looking for, but tax planning is all about putting more money back in your pocket.
Tax planning is one of the most important aspects of any person’s annual fiscal plan. At the end of the day, successfully optimizing your tax returns can make or break your finances for the entire year. Ensuring that you are getting everything extra penny possible to mitigate your income and business costs. Tax planning is also a great way to ensure that you are staying on top of all compliance requirements. The last thing you need is to get audited by the IRS. Even if you have not purposefully evaded any of your owed income taxes, IRS agents comb through everything with a fine tooth comb and will come for you over the smallest mistake. It is always best to avoid triggering an audit. Reduction of tax liability and maximizing your ability to contribute to retirement plans and other investment avenues are crucial in setting you up for financial success all year long.
What Do You Need to Get Started?
Realistically, you can start tax planning with as little as access to a computer. Systems like Excel and Google Sheets can be used to set up a simple spreadsheet outlining what information needs to be gathered to successfully complete your tax forms. You can add things like checkboxes or links to tax filing software easily to keep yourself on task.
If creating your own spreadsheet is not something that you feel comfortable with doing for one reason or another, there are plenty of useful software programs available for little to no upfront cost that can help you get started on your tax planning. Here are a few steps that you can take to get started with your tax plan before tax season begins.
1. Educate Yourself
The first step in planning for each tax season is to educate yourself on your specific tax situation. Understanding things like what tax bracket you fall into, how the waterfall system works in regards to taxation, what kind of income form you will be reporting, and what that means for your individual tax forms. Additionally, other aspects of your tax forms like claiming dependents, new assets, or business costs, and any other “extra steps” are going to require more documentation. Knowing things like what paperwork to bring to the table can help save you a ton of time and stress in the long run.
2. Get Your Paperwork in Order
When it comes to filling out your annual income tax forms, documentation is king. By that, we mean that you are going to need a concrete backup for everything you report. For example, if you are reporting a business loss, you should go into tax preparation and filing fully prepared to back up your claims with your business accounting for the year as well as proof of business costs, employee salary information, and any other documentation that is going to help you prove that you truly did operate at a loss in the previous fiscal year.
This concept should be applied to every step of the tax filing process. Claims and documentation should always go hand-in-hand to ensure that you do not find yourself on the bad side of the IRS should you be audited.
3. Find Your Preferred Software
There are thousands of software programs, spreadsheets, and documents that can help you plan out your next tax season. Finding the one that best fits your needs is one of the most important parts of tax preparation.
Given how many options there are available to you, reading expert opinions on the best programs to use for your family, business, or investment tax returns is one of the best ways to cut down on your search time. Websites like Investopedia and NerdWallet have done extensive reviews of different tax planning software that may help you in your search.
Keep in mind that this part of the process might be time-consuming so make sure you are getting a head start on this and not putting it off until the last minute. Procrastinating on making important tax decisions can only lead to added stress.
4. Start With The Basic Information
There are many parts of filing your taxes that cannot be done ahead of time. Fortunately, though, there are just as many that can be filled out before you receive any official documents, such as investment reports or employment income documents. You have undoubtedly noticed that filling out tax forms seems to involve entering the same basic identifying information–name, address, marital status, etc…–several times over. This is because when you are filing taxes, you are not just filing federal income taxes. You are also submitting state and local tax forms to ensure that you remain compliant with the tax laws for all of the different branches of the government.
Going into whatever program you use, whether that be TurboTax, H&R Block, pulling the paperwork from IRS.gov to take to your personal CPA, or any other avenue you prefer, you will see an option to begin your application even before tax season officially begins. Doing so and filling in all of your identifying information before you get into the nitty gritty can save you a ton of time down the road.
5. Work Through Your Return Line Item By Line Item
If you are able to walk through your tax return line item by line item before you jump into your tax return with all of your official documentation, it can help you understand what you are going to need to bring to the table when you sit down to file. Having the tax forms in front of you is one way to do this but you can also visit IRS.gov to see a line item view of documents and verification forms that you will need to file taxes.
Steven Klitzner: Your Tax Resolution Specialist
Tax forms are likely the most complex legal documents you will ever have to deal with and you have to file them every single year. Don’t beat yourself up if you do not complete every section perfectly every time. This is totally normal and nothing to worry about. If the day ever comes when the IRS decides to take a closer look at your tax returns, you can rest assured that tax resolution attorneys like Steven Klitzner are here to help get you through it.
IRS audits can be triggered by something as simple as rounding off income amounts or even by random selection. Being audited does not mean that you are being targeted or suspected of any false reporting. It simply means that the government flagged your return and needs additional information to proceed with processing your return. That being said, you should never go into these meetings alone. Calling on qualified tax resolution experts like Steven Klitzner to represent you in negotiations with the IRS is your best way to ensure that your naivety is not being taken advantage of by federal agents.
Tax resolution attorneys deal with IRS representatives every day–they know how to handle whatever sticky situation you might find yourself in. If you have received that dreaded audit letter for previous years’ tax returns or would simply like a consultation to discuss potential tax issues, give The Law Office of Steven Klitzner a call today at (305) 682-1118 or visit us online to learn more.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
