Tax season is heavily upon us, and it can be stressful making sure you have all your documents in order. If you’ve already filed your taxes for this year, it’s a great time to reflect on how the experience went and what you can do differently in the future. Tax season can be a difficult time for everyone, but it doesn’t have to be! With our tax season survival tips, you can stay on top of the game and be more than ready for next year’s tax season!
Tax Season Survival Tips
1. Start Early
There’s no time too early to start thinking about your taxes. Don’t stress by waiting until the last minute to gather all your information and documents. Make a plan for where you’re going to keep all your tax documents as they become available, as well as any tax deductions you want to collect this year. Having a plan for the entire year will help you be prepared with all your information when it’s time to file and eliminate any surprises when you get your tax return.
2. Stay Organized
Staying organized is the key to reducing stress. It’s overwhelming to have to search for your tax documents in different places and make sure you aren’t missing any. Keep all your documents in one place, such as a designated folder, so when it’s time to give them to your accountant, they’re ready to go. Additionally, if you notice you are missing a document from a place where you should have been sent one, make sure to follow up.
3. Be Aware of Tax Deductions
There are several areas where you may receive a tax deduction, including any charity you gave, business expenses you made, and other eligible categories. Learn about tax deductions you may be eligible for so you can take the maximum advantage of them. These deductions are there to help you, but you miss out on their benefits if you don’t report them when you file your taxes.
4. Set Aside Funds
While some people do receive money on their tax return, many people end up owing taxes. This is not a bad thing–it means you made money this year! However, if you are not expecting to owe anything or you do not have money set aside, it can come as an expensive shock. Throughout the year, it’s a good idea to set aside some money to be used for taxes you might owe. A strategic place to keep this money is in a high-yield savings account, so that it can earn some growth while it is waiting to be used. This way, if you do end up owing, you’ll already have money designated for this expense and you won’t feel the financial sting in your bank account.
5. Work with a Professional
One of the best ways to remove some stress from tax season is to have someone else file your taxes for you! A professional will take care of all the paperwork involved in filing and will also help you identify any areas where you may claim a deduction.
The professionals at DeSantis, Kiefer, Shall & Sarcone can help you manage your finances and stay on top of tax season. If you are looking for tax season survival, our experts will ensure you are well prepared and financially ready for whatever tax seasons brings!
