73% of adults say that taxes are one of the top stressors in their life. So, if you dread tax season, you’re not alone!
Although we all need to pay taxes to the Internal Revenue Service (IRS) each year, it’s not so bad if you prepare in advance. A bit of planning and organization can save you time and make it much simpler to file taxes.
Curious how? If so, keep reading to find five helpful tax preparation tips to take the stress out of filing income tax.
1. Stay Organized Throughout the Year
When it’s time to prepare taxes, the process will be much easier if you’ve been organized throughout the year. Many people use tax software to track all of their income and deductions, but a spreadsheet does the job too.
By tracking your costs and expenses as they come in, you’ll save plenty of time.
2. Keep Track of Your Deductions
You can save lots of money when you file your taxes by claiming all of your eligible deductions. Depending on your employment industry and financial circumstances, you can probably claim a number of useful deductions.
For example, you can often claim charitable donations, work uniforms, childcare costs, and student loan interest.
3. Hire an Accountant
If your situation is complex, you’re better off hiring an accountant. They can help with your filing, ensuring everything is done correctly.
They’re also experts when it comes to tax requirements and can often help you find deductions you might’ve missed on your own.
Of course, if you’re in arrears with the IRS or dealing with serious issues, like suspected tax evasion, you’ll also want to hire a tax lawyer.
They can investigate your problem and help reach a mutually agreed decision between yourself and the IRS.
4. File As Soon As You Can
Procrastination doesn’t pay, so file your taxes as soon as you can. That way, you’ll get your refund processed sooner and faster.
As more people file, the longer it takes for refunds to be sent out.
5. Gather All of Your Income Sources
Another top tip—remember that you’ll need to pay tax on all of your taxable income, not just your job. So, if you’ve won the lottery, received a large work bonus, or made money off the stock market, you need to declare.
So, to make tax time easier, compile all of your income onto a spreadsheet so you know exactly how much you’ve earned.
Tax Preparation Is a Breeze With These Tips
While no one loves filing taxes, the sooner you can get it done, the happier you’ll be! Use these tax preparation tips to stay organized and prepare throughout the year, ensuring you’re ready when April rolls around.
That way, you can get your taxes done and then get back to enjoying your life, knowing that you’re in the good books with the IRS!
Did you find this article helpful? If so, please keep reading to find more great content.