Organization key to taking stress out of tax season

Published 12:54 am Sunday, December 27, 2009

NATCHEZ — Tax time doesn’t have to be stress time.

Locals who prepare taxes say with a little organizational work ahead of time, tax preparation can be simple.

Denise Seale, a certified public accountant at Silas Simons LLP said the key to limiting stress during the tax season is taking time before the tax deadline to gather and sort needed tax documents.

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“It is hard to start anything unless you have everything you need,” she said. “Sometimes people will come in with everything in a shoebox and just kind of throw it at you.

“Then you have to sort through it and determine if everything is there.”

Documents impacting yearly income, investments, tax credits and tax deductions are all things that need to be on hand before tax form preparation can begin.

Seale said tax filers with income from rental property need to collect information regarding income from the property as well as expenses incurred because of the property.

Medical bills, childcare expenses, receipts from tax-deductible donations and tax receipts for items such as car tags and property should also be organized.

“If someone takes the time beforehand to get all of these things together, it is wonderful for the preparer,” she said. “It takes a lot of stress off of the individual and helps us do our job more efficiently.”

Seale said having paperwork organized and easily accessible can also mean a little more green when tax refund time rolls around.

“It is easier to determine if someone qualifies for tax credits or deductions if we have all the information in front of us,” Seale said. “That is especially important with the new tax credits.

“Also it doesn’t tend to cost as much if you are more organized.”

The deadline for filing income tax returns with the Internal Revenue Service is April 15. Seale said she begins seeing people around Jan. 15 to work on tax returns.

In recent years, it has been harder for early birds to get their taxes filed because the deadline for investment firms to mail 10-99 forms has been pushed back.

The deadline for this year is Feb. 15.

Employers must distribute W2 income forms by Jan. 31.

Once W2 forms are in hand, Seale said many people begin filing returns and waiting on any refund they may receive.

“For people who depend on that extra income, waiting is the hardest part,” she said. “If they can come in, get it done and get out, they are much happier.”