With every new year comes the looming spectre of tax time. The earlier you get organized, the better you can plan to owe less and get more back. Here’s what to tackle to get your finances in order ahead of the May 1st deadline.
Review last year’s info
Looking at your previous tax returns are a good reminder of the information and documents you’ll need to have on hand when it’s time to file. It will also give you a sense of steps you’ll need to cover or how things have changed; maybe you got married or your kids moved out.
Explore credits and deductions
Every year there are changes to what people can claim or deduct on their taxes. Do some quick research to see what’s new, and what it could mean for your family. Will the new tax brackets for the 2022 tax year change what you owe? It’s always worth a look for any credits or benefits you might have missed out on last year too.
Use one-stop storage
While many of us handle finances on our devices, some things like receipts from the dentist or for an energy-efficient appliance may still be paper. Set up a single place to sort and store your hard copy receipts. Consider a large accordion folder in which you can separate the current year and past year’s information by family member. Organize digital files with the same method and consider scanning paper documents for convenient digital access and back up.
Ensure you’re cyber safe
Online banking and digital record keeping are everyday tasks to most of us. And storing everything on your devices can be useful and efficient. Just be sure to follow cybersecurity best practices to help prevent identity theft and fraud. Use unique passwords or passphrases and avoid using public Wi-Fi for any financial activities. If you must use public Wi-Fi, ensure you use a virtual private network (VPN) to secure your information. Enable multi-factor authentication (MFA) on your accounts as well, such as an email or text message with a code for secure login.
