Taxes are a real pain, but if you stay on top of them, they don’t need to be as difficult to deal with. With these tips, it’s easier than ever to ensure you get your taxes in order before the end of the year.
1. Set Up a System That Works for You
Obviously, it’s important to track what you’re spending and where and then use this information to make sure everything is accounted for, but it’s also important to come up with a system that makes it easy for you to do this. Make sure you’re gathering your receipts (don’t forget those credit card statements at the end of every month!) and that you’re using financial software or an app that makes record-keeping super simple. If your taxes are going to be taken care of helpfully by someone else, make sure they know how your records are organized, so they have everything they need.
2. Use IRS Resources
The IRS has tons of great resources to help you file your taxes. If using the IRS’s forms seems daunting or confusing because of your unique life situation, consider getting some advice from a CPA or other tax professional.
3. Make Sure You Keep Track of What is Deductible
When you file your taxes, you need to ensure you’re keeping track of your allowable deductions so that your taxes are as accurate and simple as possible. This can be a bit tricky because of the generally complicated ways that taxes are organized, but if you keep things simple by using a good old-fashioned notebook, it’ll be easy for you to make sure everything is accounted for.
4. Know How Much Time It Takes to Do Your Tax Return
This is important because even though it’s best to file early, there’s no way around the fact that it takes quite a bit of time to get everything together and into order. If you wait until the last minute, you risk putting yourself under a lot of stress and even missing the deadline.
5. Be Prepared for Tax-Related Life Events
Getting married, having a baby, or buying a new house can all create tax implications in the years that follow. If these things happen to you, make sure you’re keeping track of them, so your taxes don’t suffer.
6. Save Receipts
It’s always a good idea to save your receipts, but it’s particularly important when you’re doing your taxes because they can be used as proof of where certain expenses were spent and how much they cost. Even if you don’t end up claiming them, it’s still helpful to keep them, just in case.
7. Keep Money Aside for Taxes
You may not have given much thought to the fact that you’ll need money for taxes throughout the year, but this is true. Keeping some money aside will help you account for unexpected tax expenses and ensure you don’t have trouble meeting your obligations.
8. Get the Help You Need
If you need any help with whatever it is that needs to be done, whether it’s tax preparation, estate planning, legal advice, or anything else, make sure you get it. Many great tax professionals can help you with your taxes and ensure they’re done correctly and on time!
In conclusion, taxes are a real pain, but if you stay on top of them, they don’t need to be as difficult to deal with. With these great tips, it’s easier than ever to make sure you get your taxes in order before the end of the year.