Personal Finance Tips for a Pain-Free Tax Preparation

The weeks surrounding April 15 are a stressful time for everyone. Whether you are lucky enough to be expecting a refund, unlucky enough to know that you will be writing the IRS a big, fat check, or one of those folks who prefer to remain in the dark about their taxes until the absolutely last minute, few people look forward to their appointments with their tax preparers. What should you expect? What should you bring to the appointment? Although no one but your tax professional can tell you exactly what the outcome of your tax preparation will be, following some simple steps can help you get ready for the big day.

The first step in getting ready for your appointment with your tax professional is to review last year's tax return. Take a minute to look over the return and all of its attachments. Knowing what you needed last year will give you a peek into the documents that you'll need this year.

The next step in preparing for your tax preparation is to stop and think about all of the changes you've experienced in the last year. Maybe the change was something simple like a change of address. Or maybe that change of address was caused by the purchase of a home. No matter if your changes have been big or small, you should make sure that your tax professional knows about them. Knowing about your situation will enable him to take advantage of any tax breaks that might be applicable to you.

The last thing you need to do before heading to your tax professional's office is to gather all of the paperwork you'll need in order for him to complete your tax return. This is where that time you spent reviewing last year's tax return comes in handy. If you had a form at last year's tax preparation, such as a Form W-2 from your employer, a Form 1098 from your mortgage company, or a charitable contributions statement from your favorite charity, you'll want to find this year's version of the same form. If you've received something new in the mail (for instance, a person who just purchased his first home this year may have never received a Form 1098 before) that is marked as a tax document, be sure to bring that along with you, too.

Prepare your taxes with the least amount of financial pain.

Credit: Mokra

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