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How to Save Time and Money with The Right Tax Preparation Supplies?

Preparing your taxes can be tedious and time-consuming. Having the proper tools and organizational supplies can help make DIY tax prep much smoother and more efficient. With the deadline for filing your return just around the corner, now is the time to gather everything you'll need to complete your taxes with minimal stress.

In this blog, we'll look at the essential tax documents, forms, and organizational supplies that can save time and money as you prepare your return. Getting organized ensures you don't have to hunt for receipts and paperwork as the filing deadline creeps up.

Read on for pro tips to make your DIY tax experience easier.

1. Must-Have Tax Documents and Forms

Having all the right tax preparation supplies in one place simplifies tax prep. Here are the must-have items to gather before you begin:

· Prior year tax returns - Having previous returns handy helps speed up prep and ensures accuracy.

· W-2 forms - Employers must issue these by January 31. Save time by gathering them early.

· 1099 forms - Banks and other institutions use these to report income like interest, dividends, and contractor payments.

· Social Security statements - Review these for accuracy on your earnings record and future benefits.

· Investment statements - Brokerage firms send annual statements on capital gains, losses, and dividends.

· Mortgage statements - Form 1098 outlines mortgage interest paid and needed for deductions.

· Charitable receipts - Itemize deductions for donations to qualified non-profits.

· Property tax records - Deductible if you itemize instead of taking the standard deduction.

· Business records - Income and expenses if you are self-employed or have a side business.

Having all these key documents organized makes filling out your return simpler. You'll also save time hunting for missing paperwork.

2. Tax Software and Online Filing

One of the best investments you can make is quality tax preparation software. Programs like TurboTax and H&R Block Tax Software make it easy to enter your information and maximize deductions. Features like e-file and direct deposit get you your refund quicker.

Look for tax software that:

· Imports last year's tax return to save data entry

· Matches your forms to the proper IRS schedules and forms

· Flags errors or overlooked deductions

· Lets you track your refund status after filing

Filing electronically and requesting your refund via direct deposit allows the IRS to process your return faster. You don't have to wait weeks for a mailed check. Just make sure your bank account information is input correctly.

3. Deductible Expenses and Mileage Logs

Throughout the year, save receipts for any expenses that may be tax deductible. This includes:

· Medical expenses like doctor and dentist bills

· State and local taxes paid

· Mortgage interest

· Charitable donations

· Work expenses like uniforms and supplies

· Business travel and mileage

Detailed mileage logs ensure you capture every tax-deductible mile you drive for business, charity, medical appointments, or eligible moving expenses. There are great apps to make mileage tracking easy.

4. Record Keeping and Organization

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Staying organized is key for stress-free tax prep. Keeping documents and receipts in labeled folders, binders, or digital cloud storage lets you quickly find what you need.

Some useful organizational supplies include:

· Accordion files or multi-pocket folders for sorting paperwork

· Binders with tab dividers to separate categories like deductions, income, investments, etc.

· Clear plastic sleeves to store and protect receipts from smearing

· A dedicated portable file box for all things tax-related

· Digital scanning apps like Evernote create cloud copies as a backup

The more organized you keep records throughout the year, the smoother tax time will be.

5. Deduction Finder Apps

Don't overpay by missing hard-to-recall deductions. Apps like Expensify and Hurdlr track business expenses, mileage, business travel, tips, and other everyday deductible costs as they occur. Simply snap a photo of each receipt. Some even automatically extract key data like date, amount, payee, etc.

Come tax time, easily access detailed, exportable expense reports. Deduction finder apps are must-haves for the self-employed or side hustlers deducting business expenses.