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Tax Season is Over, What Should You Be Preparing for Next Year?

Tax season can be a stressful time, especially if you’re not prepared. However, with a little bit of planning ahead of time, you can make the process much smoother. In this blog post, we’ll focus on what you can do ahead of time to prepare for tax season, specifically when it comes to property taxes.

Keep track of important documents

One of the most important things you can do to prepare for tax season is to keep track of all the documents you’ll need when it comes time to file your taxes. This includes things like property tax bills, mortgage interest statements, and any receipts for improvements you made to your property. Keeping all these documents in a safe, easily accessible place throughout the year can save you a lot of time and stress when it comes time to file.

Understand the local property tax process

It’s important to understand the local property tax process in your area so you know what to expect. In Texas, for example, property taxes are assessed annually, and the appraised value of your property can change from year to year. Make sure you understand how the appraised value is determined, what exemptions are available, and how the local tax rate is set.

Consider appealing your property tax assessment

If you think the appraised value of your property is too high, you may be able to appeal the assessment. This can potentially lower your property tax bill. Be sure to understand the deadlines for filing an appeal, as well as the process and requirements for doing so.

Take advantage of available exemptions

As we mentioned earlier, there are several exemptions available for Texas property taxes that can help reduce your tax liability. Be sure to understand what exemptions you may qualify for, such as the homestead exemption, over-65 exemption, or veterans exemption. Take the time to apply for these exemptions if you’re eligible.

Plan ahead for payment

Property taxes can be a significant expense, so it’s important to plan ahead for payment. Consider setting up a payment plan with your local taxing authority if you’re unable to pay the full amount upfront. You may also want to consider setting up an escrow account with your mortgage lender so your property taxes are automatically paid throughout the year.

Seek professional advice

If you’re unsure about how to prepare for tax season or have questions about your property taxes, don’t hesitate to seek professional advice. A tax professional like TXPTR can provide guidance and help ensure you’re taking advantage of all the available tax benefits.

In conclusion, preparing for tax season ahead of time can save you a lot of stress and hassle. When it comes to property taxes, be sure to keep track of important documents, understand the local tax process, consider appealing your assessment, take advantage of available exemptions, plan ahead for payment, and seek professional advice if needed. With a little bit of planning and preparation, you can make tax season a much smoother process. 

Do you need some help understanding and preparing your taxes for next year? A member of our team would be happy to meet with you and walk you through our processes when it comes to tax season. Contact us today to learn more!