Sponsored: 5 Tips to Ease Stress During Tax Season
Tax season officially began at the end of January. While most people don’t particularly enjoy dealing with taxes, we can make our lives easier by being prepared. Below are five tips to better prepare you for this tax season and those in the future.
1. Do not procrastinate: The earlier you begin working on your taxes, the less stressed you’ll be when the time comes to file. Although the deadline is April 15, life will be much more enjoyable if you file well before then. If the mere thought of filing your taxes seems overwhelming, break the tasks into chunks. For instance, spend a morning gathering all of the paperwork and materials you will need nearby while filing. If you’re working with an accountant, ask them what items you will need before you meet. If you’re filing on your own, try filing your state return during one sitting and your federal return during another. That way, the process is divided into more manageable steps.
2. List write-offs during the year: If you freelance or own a business, be sure to keep a running record of your write-offs throughout the year. Don’t rely on your memory to try and remember all of the items and excursions that can be written off. If you did not do this for the current tax season, begin making that list now for next year. Also, talk with an accountant or do your research to ensure you’re gaining the maximum benefit from your business expenses.
3. Get help when needed: With so many services moving online, a lot of people file their taxes themselves. However, this can get overwhelming, especially if you have a complicated portfolio such as multiple 1099s, numerous expense deductions, etc. If you don’t want to pay to hire an accountant, use one of the online filing systems that offers a customer service component. If you do have the budget to hire an accountant, it’s usually worth the money to alleviate the headance of doing it yourself and be confident everything is done correctly. An intermediary option would be to hire a consultant to offer some tips but to do the actual filing on your own.
4. Communicate: Communication is key when it comes to all aspects of relationships, so if you’re filing jointly with your spouse, ensure the two of you are on the same page. Many months before filing, schedule a time to sit down and discuss how you’re going to file, when you’re going to file and any deductions the two of you may have. It’s often helpful to create a strategic plan that you use year after year or implement systems such as a shared document that’s routinely updated with notes and write-offs. This will make life less stressful when the time comes to file. If you end up getting a refund, perhaps the two of you can do something fun with a portion of the money to celebrate your hard work.
5. Take care of yourself: Taxes can take a toll on your physical and mental health, especially if you’re not prepared or if you keep asking for extensions. If you freelance or own your own business, be sure to set aside 30 percent of your income each month for taxes or pay your taxes quarterly. Even though you may not have to pay the full 30 percent after deductions, it’s better to have too much than not enough. Simply having the amount you need when tax season arises will eliminate mounds of stress. Additionally, take care of your health. Eat nutritious food, get enough sunshine, spend mindful time with loved ones and prioritize sleep.
Tax season doesn’t have to be debilitating. Taking a few measures to prepare yourself makes all the difference in the world. Once you establish a few routines and habits, you’ll begin to wonder what was every stressing you out in the first place.