Are you looking forward to tax season? Of course not! No one looks forward to tax season – well, that is, unless you are getting a refund.
If you expect to count yourself among the many people who will have to pay taxes this coming April, you are probably dreading the arrival of the deadline. We can’t do anything to make paying your taxes more fun. But, we may be able to provide some advice on getting through this part of the year with less stress.
1. Start Saving – Now
If you expect to pay, there is nothing better you can do than to start saving for your tax bill right away. Of course, if you are supposed to pay estimated taxes on a quarterly basis, keeping up with those payments throughout the year should take the stress out of the deadline.
As long as you have paid enough estimated tax, the actual deadline won’t be much of a threat. Simply file your paperwork on time. Make any small payment that might be necessary to level your debt. Then, move on. By waiting any longer to start thinking about the taxes you will owe, you are only going to make the problem worse.
2. Get Help
While we like to advocate saving money wherever and whenever possible, sometimes it actually pays off to spend a bit of money. That could be the case when it comes to getting tax help. If you have a particularly complicated tax situation, or if you just don’t want to have to deal with the paperwork on your own, hiring an accountant to do the job could be a wise investment.
This is especially true if the accountant is able to find deductions that you would have missed. Or, if they can save you time that will be used to actually make money. Not everyone needs to retain help with their taxes, as some people have a very simple and straightforward tax situation. If yours is complicated, however, think about getting help and the peace of mind that goes with it.
3. Be Organized
One of the stressful parts of tax season actually has nothing to do with making tax payments. It is just about simple organization. If you aren’t organized, you might stress yourself out trying to find all of your documentation.
Any time you get a tax form in the mail, like a W-2, place it in a specific folder in a dedicated spot in your home, such as the office. If you stick to the rule of always placing your tax documents in the same folder, you should have no trouble tracking them down when the time comes.
Likewise, if you get digital tax information through your email, save those to a dedicated email folder that you can access while preparing your return. Organization is a key component of a lower-stress life. This is certainly true when the topic at hand is taxes.
With these tips, you’ll be able to navigate through another tax season successfully.
Do you expect a tax refund this year? How do you handle tax season stress?
Photo courtesy of: Josefa nDiaz