4 Tips to Use Now for the 2017 Tax Filing Season

By Top Tax Staff | May 18, 2016 7:30:00 AM | Tax Tips and Help

    

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You may have breathed a sigh of relief as this year's tax season passed. As tempting as it may be to forget about your financial specifics right now, the time has never been better to start preparing for next year's taxes.

The rest of 2016 could pass very quickly, leaving you unprepared for filing your returns after the turn of the year. You can be ready and avoid unneeded stress by using these tips to prepare for the 2017 tax season now.

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Start Organizing Your Documents

From now until the start of next year's filing season, you may receive a flurry of paperwork that will be crucial to your returns. It is important that you set up a filing system that works for you and one that you can easily access throughout the year.

Some of the documents that you can expect to receive may include:

  • W-2 earning statements
  • Form 1099-MISCs
  • Mortgage interest statements
  • Retirement account distribution statements
  • Brokerage account statements
  • Form 1095 if you purchase health insurance through the Healthcare Marketplace Exchange
This paperwork will find its way to you anytime during the remainder of 2016 and the start of 2017. It is critical that you keep them stored in a safe place and even scan and store copies of them online for extra security. When it is time to file your returns, you will have the paperwork you need organized and ready to go.

Review Your Personal Situations in Life

Your next year's returns could depend significantly on the life events that you experience in 2016. Some of the personal situations that may affect your tax filing season in 2017 include:

  • Getting married
  • Having or adopting a child
  • Spending money on looking for a job
  • Relocating for work
  • Starting a small business
  • Working from home on a regular basis
If any of these situations apply to your life this year, you may have to adjust the manner in which you file taxes. You might have to use different forms than the standard 1040A or the 1040-EZ. You can best clarify your filing status by consulting with a professional tax service.

Brush Up on Tax Law Changes

The tax laws in the U.S. and in your state can change drastically from year to year. You can get ready for the 2017 filing season by reviewing any changes made to tax matters like:

  • Amounts that can be put in applicable retirement accounts
  • Income limits for Roth IRA contributions
  • Trust and estate regulations
  • Business, medical, or volunteer work mileage rates
  • Rules for tax credit programs
  • Medical expense deductions
  • State tax rules

You can research the tax law changes by utilizing free tax resources in your community, such as those offered by AARP. You can also find this information on IRS.gov or on the website for your state's revenue department.

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Prepare to File Early

If you are a procrastinator when it comes to filing your tax returns, you may be well advised to change that habit and prepare to file early in 2017. Tax preparers and accountants have noted that identity theft is on the rise. They frequently encounter cases of people finding that someone else has filed a return using their personal information.

One of the best ways to avoid having someone steal your information and filing a return using your Social Security number is to file early. This action reduces the chance that someone else could file a return and lay claim to your refund later in the tax season.

It is never too early to get ready for next year's tax filing season. Using these strategies, you can prepare yourself now and be ready when tax season opens in 2017.

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