Your tax information doesn’t become irrelevant after you receive your tax return. Many individuals make the mistake of tossing their files into any random drawer the moment the cash hits their bank account, but there’s a reason to keep those papers organized and ready to go for just a while longer. Take a look at these frequently asked questions regarding why you should always hang on to your taxes before consulting your trusted financial advisors at A. Roberts & Associates!
What Important Information Is On My Tax Records?
You may be wondering what’s so important in your tax files that you would need on hand even after you get your tax return. Oftentimes, you may need to refer to data from previous years such as your income, expenses, and any credit lines that you may have had. Your tax forms make it easy to pull up this information all in one place without having to go on a wild goose chase.
What Are The Main Reasons For Keeping My Tax Records?
There are countless reasons why you may need to access the information that you can find on your tax forms, but here are a few of the most common:
- Keeping track of changes in your income
- Supplying proof of income when applying for credit or loans
- Refuting false information on other forms
- Preparing various types of financial statements
- Observing fluctuations in your business
How Long Should I Hang Onto My Tax Records?
You don’t need to overdo it and save all of your tax records for the next few decades to pass on to your descendants. Depending on your situation, you would only need to keep a tax record for three years at the very least. That is, as long as you keep up with your yearly tax filing. If you don’t file your taxes, or you omit certain information when you file, you may be asked to supply information as far back as 6 years or more.
Is It Safe To Keep Digital Copies Of My Tax Records?
The idea of dedicating an entire drawer to holding all of your most recent tax folders might not sound like such a hot idea to you, and that’s when digital copies sound all the more appealing. Going paperless can come with additional benefits, too! It can be easier to search and pull up the exact information you need, and using less paper is ultimately easier on the environment. However, these digital files can easily disappear without a trace if you’re not careful. If you plan to take this route, be mindful of backing up your files onto an external storage device for good measure.
What about filing your taxes online? That’s a different story. Learn more > 7 Reasons to Hire A Tax Professional & Avoid Online Tax Tools
How Can I Prepare For The Upcoming Tax Season?
It’s never too late to get started on healthy tax-filing practices, but what can you do differently for the coming tax season? You can get a head start on digging up your past files which can sometimes come in handy. You can also make an effort to maximize your taxes by looking up end-of-year tax actions that could help your case when it comes time to file. But for the best recommendations, it’s better to contact your trusted financial advisors sooner rather than later to give yourself time to properly prepare.
Where Can I Find Assistance With My Taxes Near Me?
Get your taxes done like a pro and reach out to the financial advisors at A. Roberts & Associates for reliable tax services near you! We’ll sit you down for a consultation and review all of your information to curate a personal financial plan just for you. Be prepared this coming tax season, visit us today!