It’s an amazing thing – tax season rolls around each year at the same time, but it seems that every year we get caught off guard with the “oh no, not again” mindset that can derail us from action dead in our tracks.
If you’re tired of fighting the vicious cycle that can often be as deflating to your energy-level as the dollar seems to be at your local grocery store these days, then try incorporating a few of these tips to help you sail through your taxes this year:
1. Start now: As the saying goes, “there’s no time like the present.” Even if you’re just organizing your thoughts about how to tackle this year’s tax season differently from years past – it’s smart to start today. The secret is to not get stuck in the thought process at the expense of not taking action. If you find yourself getting stuck in this first step, why not take your laptop to an outdoor setting and use your wireless Internet to free your thoughts with a change in scenery?
2. Make a plan: That’s right – get out a piece of paper and a pen and write down an action plan with deadlines associated with each step. In other words, give yourself a specific number of days to organize your paperwork (receipts, income forms, etc.) into one central location. Next, give yourself a timeline to break that paperwork out into subcategories (household, medical, child care, etc.). As with most things in life, small steps make any process more manageable.
3. Assess the situation: If you’ve been doing your own taxes in the past and not much has changed in your life that would warrant a need to approach your taxes differently this year, then plan to continue doing them yourself. If, however, you have experienced a major life change like a divorce, home purchase (or loss), sending a child off to college, etc., it is recommended by many tax preparers that you use a professional service instead since they are more familiar with the new changes you are facing and how to best incorporate them into your tax profile.
4. Go back to your plan: After you’ve decided whether you’re going to continue to do your taxes yourself or hire a professional, now is the time to go back to your plan and modify it as needed. If you’re going to use a professional, start asking friends, family and co-workers for references since the best endorsement will most likely come from someone you already trust. If you’ve decided you’re still going to prepare your own taxes, research some of the great online resources that have kept current with the changing tax laws and give yourself a deadline to complete this as well. If all this research sounds daunting and time consuming, rest assured that with something as powerful as super-fast 4g Internet service it’ll go a lot quicker than you think.
5. Get started: OK, your plan has been revised and due dates are set. There’s little left to do except make sure that you have attained each date’s benchmark so you can progress to the next one. It’s truly that simple, and time will pass a lot quicker for you when you have a clearly delineated plan to work from. You use instructions in just about everything in life – so why would you ever go into something as daunting as tax season without a similar tool?
It should go without saying that you should double-check your work (and this should in actual fact be one of the action steps on your plan), but you’d be surprised at how many individuals turn in information that contains errors. And sure, while these errors will eventually be caught by the Internal Revenue Service, they could possibly delay any return you are eligible to receive or worse, result in a tax audit.
Now, instead of being frightened to the point of inaction because of this possibility, get your pen and paper out and start the process – just make sure you include a step to check your work.
