For many, the words ‘tax-season’ instantly bring on a cold sweat. What if we told you it didn’t have to be this way? With some thought and preparation, tax season can be a walk in the park. While it’s true you’ll probably never look forward to tax season, we can certainly help you find it less stressful. Ready to reduce tax season anxiety? Read on.
Don’t Leave It Until the Last Minute.
Whether you’re tackling your taxes solo or you’ve enlisted the help of a professional, it’s never a good idea to leave it until the last minute. The later you leave it, the busier tax experts become, so getting help may become impossible if it’s close to the filing deadline.
Our advice is to start on your taxes as early as possible and to begin filing your forms and documents as soon as they start arriving in January.
Organization is essential to getting your taxes done right. How you choose to organize is up to you, but you must do it. You could do something as simple as designating a box at the start of the year where you keep any documentation you think may useful for tax season. Keeping a box of receipts and invoices will help you when you want to get deductions at the end of the year.
Enlist the Help of A Professional
Many take on sole responsibility for doing their taxes, only to regret it when tax season arrives, and they’re swamped with confusing paperwork. It’s not always easy to decipher the tax system and tax experts build careers on knowing the ins and outs of it all. It’s a good idea to seek the help of one of these professionals, as they’ll almost likely save you money, time and peace of mind.
The sooner you get tax advice, the better, because the closer it gets to tax season, the busier they’ll get and the less likely they’ll be to help you. They’ll also be able to advise you throughout the year on how to save money on your taxes.
Stay Up to Date on Tax Code Changes
Nothing stays the same for long when it comes to taxes. If you foresee upcoming changes to tax codes and regulations, you can prepare and benefit from them. You can look up these changes on the IRS website.
Get Help from Friends and Family
Taxes can be stressful, and they can require a lot of tedious work. Don’t be afraid to ask for help from family or friends. They can help you with some of the most boring jobs like sorting through receipts.
Understand That Life Happens
Life is unpredictable and changes to your life can have a knock-on effect on your tax situation. Marriage, birth, college, moving to a new house, and many other events can affect your tax situation, so remember to be aware of any changes that might affect your taxes.
Separate Taxes from Life
Taxes are a pain, so it’s important to keep your taxes separate from your everyday life. It’s best to find a separate space such as an office in which to tackle your taxes, rather than doing it on the kitchen table. This can keep the stress compartmentalized and easier to deal with.
Check Out Tax Software
Sure, pens and pencils are fine, but taxes are complicated. It can make your job a whole lot easier if you use a tax software program. There are a lot of choices, but Turbo Tax has been a market leader for some time. For a list of highly rated tax software options, click here.
Use the IRS Website
The IRS website is your go-to resource for all things tax. Use it for research and finding answers to your tax questions, along with forms.
If you can’t find answers on the website, call their toll-free number 1-800-829-1040 between 7 am and 7 pm Eastern Time. Remember, the closer it gets to the tax deadline, the busier the lines get.
The easiest way to file your tax return is online, so file electronically if you can. It’ll save you having to head to the post office and if you’re due a refund, the IRS will be able to process it much quicker.
Taxes have the potential to derail your finances when you’re already struggling with debt. If you’re drowning in credit card debt, it can feel like there’s no way out. The truth is that there is a way out. We at CreditAssociates help people resolve their debts in as little as 24-36 months. If you’re ready to break the debt cycle, get in touch.