Making Tax Season Stress-free

Easy Ways to Make Tax Season Stress-free

If the thought of filing your taxes gives you a headache, you’re not alone. For many, the complexity of the tax code, uncertainty around the process, and the prospect of having to write a check to the government are sources of dread. However, there are things you can do to take control of your taxes and prevent stress from taking hold. The Tax Loft offers these tips to make your next tax season as smooth, easy, and hassle-free as possible.

The Tax Loft can help you keep accurate records, comply with tax requirements, and plan for your financial future. Call (207) 824-8096 or submit this form to schedule an appointment!

Start early

The pressure to file in a timely manner can be a major source of stress. Don’t wait until April to prepare and file your taxes. The earlier you start, the better. Giving yourself plenty of time to gather information will make the whole process seem less daunting and stressful. Anything that you do throughout the year to stay organized and keep track of documents that you’ll need when you file taxes will help buy you time.

Nearly all of us procrastinate to some degree. If you’re a procrastinator by nature, tax season can be tough. Procrastination is not laziness, but rather, a pattern of avoiding unpleasant tasks in favor of more pleasant ones. This doesn’t mean you have to make your taxes pleasant in order to do them on time, but understanding your behavior patterns may help. Consider exploring strategies for managing and prioritizing your time instead of white-knuckling yourself into your tax preparation at the last minute.

Go paperless

For some, the thought of digging through boxes of receipts, records, and files is enough to cause stress. If this is the case for you, consider going paperless next tax season. It’s not only better for the environment, but it’s also time-saving and much easier to organize digital files. Throughout the year, photograph or scan receipts that you may need come tax time. The IRS accepts these as evidence if you need to supply documentation.

Staying on top of your payouts is an important part of going paperless. This is especially helpful for freelancers, independent contractors, and non-employee workers who have to keep track of more information than employees when filing taxes. Be aware that there were changes made to the 1099 in 2020, and you will now be assigned the 1099-NEC for non employee compensation. Ideally, the company you contracted with can file your 1099 online quickly and send you both digital and paper copies.

Seek advice

For some, the stress of tax season stems from a lack of knowledge or experience. While the internet can answer most questions, the sheer volume of information can be overwhelming. If your tax questions are situational or you feel that you need support, consider talking to a reputable and experienced accountant from The Tax Loft.

If cost is a concern, remember that you don’t have to hire a CPA to prepare and file everything for you. A single meeting is often enough to help. By looking over your documents, offering advice, and telling you about any recent changes to the tax code, they’ll put you in a much better position than you would be otherwise. Then when you file your taxes electronically, you’ll be less likely to make mistakes and more likely to take advantage of possible deductions.

Tax season doesn’t have to be stressful. It’s easier than you think to make a few changes that can save you time and headaches. By starting early, going paperless, and seeking out help when you need it, you can breeze through your taxes this year and for years to come.

Written by Christopher Haymon (christopher@adultingdigest.com)

Image via Pexels