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By Sia Hasan
Special to the Financial Independence Hub
When April rolls around, everyone seems to be squirming around attempting to get their taxes completed. The complex world of taxes is full of intricate legal jargon that makes it difficult for anyone other than a tax expert to understand. Luckily, if you follow the tips we’ve outlined for you below, you’ll be well on your way to having a stress-free tax season this year.
Give yourself time
One of the biggest mistakes that people make when it comes to tax season is simply not giving themselves time to file their taxes. Most people wait until the last minute for fear of owing money. The truth is that you’re better off knowing what you owe months ahead of time so you can come up with the money.
Secondly, you can be assured that you’ll get a visit with a local tax professional or you’ll have leeway if online tax preparation software is down. Lastly, you can get the stress of taxes off of your mind sooner. The longer you sit with the idea of having to fill out your taxes, the bigger a deal you’re going to make the process in your head. Simply start your taxes early so you can get them done and handled stress-free.
Use an Online Tax Preparer
In this digital age, there’s no real reason that you shouldn’t be filing your taxes online. It allows you to seamlessly get your return accepted by the Government. There are various tax preparation software programs available online.
Many will offer free federal returns. You can even fill out 1099 online forms through the IRS website if you make less than $62,000 per year. [For Canadians, try this CRA list of approved packages: editor]
Other tax preparation software programs are available for filing state returns as well. In most cases, you can get away with filing your taxes for free or a very minimal cost, depending on how complex your taxes are. Realize that if you claim a lot of deductions or are completing taxes for a business, you’re likely going to have to pay for the right forms to do your taxes through an online preparation service.
Realize there are payment plans
One of the biggest stressors of tax season is not having the money to pay for the bill that you owe. This leads many people into putting off filing their taxes on time. The truth is, when you file your taxes late, you get hit with a late filing penalty. This just increases the amount of money you owe, which isn’t ideal at all.
Instead, get your taxes completed and filed. You don’t have to pay the bill at the time they’re filed. You can simply call up the IRS or local State Revenue Department and set up a payment plan. Many of them offer both short-term and long-term payment options for those who owe money. Be proactive in getting your tax bills handled and it will lighten up a large load off of your mind.
Keep all your paperwork in one place
When you go to file your taxes, you’re going to need various pieces of paperwork. These include things like W2s, student loan interest forms, and receipts from items that can be deducted from your return. It’s going to be a real disaster to try and round up all of these documents at once.
Instead, pick a safe place, such as a folder on your computer or a physical binder, to hold your necessary items. This way, as you get each document, you can simply put it in your designated place and forget about it. When it’s time to complete your tax returns, you can simply pull out all the documents you need in one convenient location.
Tax season is known for being a stressful time of year. The truth is that it really doesn’t have to be if you know how to prepare yourself. By employing the tips above, you’ll be well on your way to having a stress-free tax season this year.
Sia Hasan is a tech entrepreneur by day, and a freelance writer by night. Her passion lies in business technology, efficient and sleek programming, and customer relationship management. When she doesn’t have her nose pressed against her computer screen, you can find her spending time with the loves of her life, her two dogs, Pixel and Vector.
