Tax season can be brutal. Year after year, many people experience confusion, apprehension, and stress. Many people put off filing taxes until the last minute, which can further complicate things. With tax season upon us, anxiety can run high. With that in mind, read on for five tips that will help you navigate through this process this year.
Prioritize
While it can be hard not to procrastinate, prioritizing tasks and starting ahead of time is key to having peace of mind during the tax filing season. If you acquired new loans during the year or refinanced, gather up the loan agreements and amortization schedules. Make sure that you push yourself to stay on target by gathering all of the documents and items you need beforehand to ensure that the process runs seamlessly.
Consider Hiring
A certified accountant can come in extremely handy if you have a complex tax situation and you don't know how to go about it. The Internal Revenue Service (IRS) is very adamant about encouraging people to file accurately. If your tax situation is murky and daunting, consider investing in hiring an accountant who can help you navigate.
Keep Communication Lines Open
If you consider hiring a CPA for your tax process, it is extremely important to keep communication with your tax professional open and accessible. If your accountant sends you an email requesting a certain piece of information, make sure to respond with what they have requested as quickly as possible. Often your CPA's questions may require a short answer to finalize the preparation of your tax return. Either way, be available when they need you.
Breath. Don't Panic
If you owe a certain dollar amount to the IRS and are scared that the IRS will come after you, don't panic. If you plan well, you can easily set up a payment plan on the taxes that you owe, as long as you filed your prior tax returns on time and they are up-to-date. A payment plan can be set in motion by researching an IRS Installment Agreement plan and setting it up online. With an installment agreement, you can spread your payments out over the years.
Take Care of Yourself
Tax season can cause high stress, and your quality of life can be affected by the pressure. Especially during tax season, taking a few minutes to exercise, meditate or go for a long walk can improve your mood and reduce and improve focus.