10 Strategies to Make Tax Season Less Stressful
If you are exhausted on April 16th every year and stressed out from filing your taxes at the last minute, here are some practical strategies to implement now so that next year's tax season is less demanding.
1. Do Not Wait Until the Last Minute
Running short on time to complete your tax forms or to give your tax professional the time they need can be one of the greatest causes of stress during tax season. Get started as soon as they arrive.
2. Consult with Your Tax Professional
If you use an accountant or tax professional, set up an appointment with them during the off season to discuss your financial situation. They are usually too busy to see you for an in-depth consultation between January and April unless they are helping you with your tax returns.
3. Remain Aware of Tax Code Changes
The IRS does not make the tax code. As the economy, environment, and life in the United States changes, Congress has the power to change the tax code. Stay on top of the changes in the tax code. If you know the new laws in advance, take advantage of them in a timely fashion.
4. Stay Organized
How you organize documents, receipts, and data you need for tax time is a personal choice. Here are a few suggestions:
- Save all your receipts and keep them in one place. Find a convenient location for your storage unit so it is easy to see.
- Put receipts in categories.
- Log your expenses in a notebook or spreadsheet (by category). This makes totaling numbers easier.
5. Share the Work
Do not be afraid to ask for help. If you are like many people, you have a box or drawer full of receipts and tax related documents. Solicit the help of those in your life to sort out all these supporting materials. Ask someone to help separate receipts out according to the type and then put them in chronological order by date. It makes your load a little lighter and having company during tax preparation time may help ease the stress.
6. Life Changes = Tax Benefits
As your life circumstances change, tax benefits, deductions, tax credits, and filing status will change, too. Life changes and activities like selling or buying a home, losing your job, getting a divorce, getting married, moving, collecting Social Security, saving for your children's college fund, or going to college are a some of the life changes that have a direct impact on filling out your tax forms.
7. Location, Location, Location
Find a good place to work on your taxes. This means a place that has a large working surface, with room for all of your papers, good lighting, and minimal distractions. Moving your work from one area to another can be distracting and you could lose concentration.
8. Using Tax Software Can Be Helpful
You can prepare your taxes with a software product, or the old-fashioned way of paper and pencil. To learn about some of the software products available that can help save time on tax preparation, check reviews from reliable online sources.
9. Use the IRS Website for Tax Publications
Tax publications, tax forms, and tax topics are available for easy download on the IRS website. They change periodically, so stay up to date on new information. Most documents are dated with the current year to ensure you have the latest version.
10. Do Not Forget to Call
Ask general tax questions by making a phone call to the IRS. If your question is more complex, a tax expert in that subject area will have to call you back. This is a handy resource, but as April 15th approaches, the waiting time gets longer.
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