Tips for a stress-free tax season
Taxes are an unavoidable fact of life. Unfortunately, they can be somewhat overwhelming, which can cause people to put the task off and miss the deadline. Use the following tips for a stress-free tax season.
Get It Over With: The sooner you get your taxes filed, the sooner you can stop worrying about them. Early filing also means an earlier refund – if you’re due one – or time to plan to prepare to pay any owed taxes. To ensure it all happens on time, actually block out time in your calendar to sit down and work on your taxes.
Check Your Work: The last thing anybody wants to hear is that they are being audited. You can avoid this anxiety by having the right tools on hand. Start by keeping your records filed in an organized way – both digitally and on paper with a filing cabinet that locks. As you do your taxes, it is a good idea to take your time, and do a practice run. A printing calculator is a good way to keep records of all necessary calculations.
Maximize Your Refund: While many people look forward to their tax refund and view it as a windfall, it is important to keep in mind that this money is simply your own income that you overpaid to the state and federal government throughout the year. That said, you should have a smart plan for your refund wisely so that is not wasted on an impulse purchase. A few good ideas for tax refunds is investing the money into a retirement account, using it to pay down debt or padding out your rainy-day fund.