Tax season is a notoriously stressful time for millions of Americans. The pressure to gather all your paperwork, understand the complex tax code, and submit everything on time can be overwhelming. Filing your taxes doesn’t have to be a headache. In fact, with a bit of organization and some helpful tips, you can make the process much less stressful. Not to mention, you can call your local tax service for help! Check out our five tips you can use to minimize your tax-time stress. These simple steps will help you organize and make the filing process as smooth as possible.
1. DON’T PROCRASTINATE
For many people, tax season is a time of stress and anxiety. The thought of dealing with paperwork and complex financial calculations can be overwhelming. However, procrastinating when it comes to tax preparation and filing taxes can only make the process more difficult. Tax day (April 18th) can surely sneak up on you. The sooner you get started, the more time you’ll have to gather the necessary documents and file your return. In addition, filing early can help you avoid penalties and interest charges. So if you’re feeling overwhelmed by tax season, remember that it’s important to get started as soon as possible. By taking care of your taxes sooner rather than later, you can help reduce stress and ensure a smoother tax season.
2. DON’T THROW AWAY YOUR RECORDS
One of the most important things to remember when it comes to taxes is that records are key. Whether you’re a business owner or an individual taxpayer, having accurate records is essential for filing your taxes properly. This means that you should never throw away old tax records, even if you think you don’t need them anymore. The IRS has no problem going back several years to audit taxpayers, so it’s always better to be safe than sorry. Keep your records organized and stored in a safe place, and you’ll be able to rest easy knowing that you’re prepared for anything come tax season.
3. ORGANIZE & REVIEW YOUR FINANCIALS
Filing taxes can be a confusing and daunting task, especially if you’re self-employed or have a complex financial situation. However, taking the time to organize and review your financial records before you start can save you a lot of headaches later on. Make sure you have all the documents you need, including bank statements, receipts, previous tax returns, and records of any deductions or credits you’re claiming. Once you have everything gathered, take some time to review your numbers and make sure everything is accurate. This will help ensure that you get the maximum refund you’re entitled to. Taking the time to get organized now can pay off in the long run.
Tip for keeping your records organized: Consider using color-coded folders for each category (W-2 Forms, Deductions, Previous Tax Returns, SSN, etc.).
4. EDUCATE YOURSELF
Tax law is extremely complicated, and it changes regularly. So before you jump in and start to prepare your taxes, take time to familiarize yourself with some of the key areas that affect you and your business. You won’t become an expert, but at least you’ll raise your awareness level. When it comes to business taxes, there are a few key areas that you need to be aware of. First, make sure you know which business expenses are tax-deductible. Common deductible expenses include advertising, travel, and office supplies. Second, keep track of your income so that you can properly report it come tax time. This includes both money that you receive as payment for goods or services and investment income such as interest or dividends.
Even if you’re not a business owner, taking the time to educate yourself will be extremely beneficial to you in the long run and could prevent you from making a mistake on your taxes. A great place to start is the IRS website.
5. HIRE A TAX EXPERT
Taxes can be confusing and complicated, particularly if you are self-employed or have multiple sources of income. In these cases, it can be helpful to hire a tax professional to ensure that you are taking advantage of all of the deductions and credits that you are entitled to. A tax professional can also help you to navigate the process of filing an extension if necessary. While it may cost you some money to hire a tax professional, it is generally worth it, in the long run, to ensure that your taxes are filed correctly and on time.
CALL FINANCIAL CONNECTIONS TODAY
Financial Connections LLC has expert accountants and professional bookkeepers who understand the complexities of Washington State and Federal tax regulations. We translate what it all means to you and your business with our tax service in Vancouver, WA. Understanding taxes could be one of the most challenging things a business owner can face. Accounting itself can be quite a drain on your company’s resources. At Financial Connections, we work full time to keep up with these changes. Our employees stay abreast of the latest changes and amendments to tax provisions.