Hello everyone!

Today is January 23, 2012 and it just hit me – tax time will be rolling around pretty quickly. So, its now time to get motivated – to take action and get prepared for tax day. So, before you panic – here are a few tips that I plan on implementing in the next few weeks/month. Tips to make your tax planning easier. Are you ready? Let’s get started.

1. Purchase tax software. If you’re a do-it-yourself tax preparer, it would be a very good idea to use tax software.  I personally use Turbo Tax and have used it for over 5 years now. I’ve also heard some amazing things about H & R Block’s tax software as well. One thing I absolutely love about Turbo Tax is that it is relatively inexpensive and provides you with guidance throughout the process. Plus, you can see your estimated tax refund or obligation as you go, which is very motivating indeed.

2. Gather those receipts. Make sure that you gather all your receipts before you get started. This includes 1099s, mortgage statements, utility bills, web hosting receipts, office supply receipts, and all that jazz. By having all this information before you start, you’ll save yourself a ton of time and energy when you’re preparing your taxes.

3. Get professional help. Although I love doing things my own way, I’ve found that hiring a professional tax preparer is extremely important in making sure that you have not made any errors. For instance, my friend owns an online invoicing software business and he always hires a tax preparer to go over his numbers and last year his prepared saved him over $1,000 bucks. He was then able to take that money and put it back into his business.

4. Give yourself time. Don’t wait until the last minute. Get started with your taxes as soon as you can. In fact, I typically wait until April 14th to get started (just kidding). I usually start in February and since I’m self employed, it typically takes me about a month to get everything together. By starting early, I can get finished way before the deadline and still have time to get professional tax help.

In conclusion, tax time is approaching rapidly but you can get started now. I certainly plan on doing so. How about you?

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