It’s tax season (aka my Arch Rival). It is so confusing for clients because very few people know what to expect. It’s a big waiting game for all the documents just in time for the coveted trip to the tax preparer.
We all dread this time so here are a few tips to make it easier for yourself:
- Make sure you have all your documents. Take out your taxes from last year and make a list of the tax documents you received last year. Does the list match all of the documents you have in front of you? This is the surest way to feel confident that you have everything. But don’t forget that any job changes or IRA distributions can lead to more tax documents! If you have investments, talk with you advisor to make sure you have what you need from them.
- Don’t get in a hurry. The deadline is in April. You still have time! It’s better to have the right information than to rush and forget a few documents. Amending your taxes can be costly and may require TWO trips to the tax preparer – oh the horror!
- Use a professional tax preparer*. It is so important that your taxes are correct. Mistakes are often costly and a waste of time so it is absolutely worth the little extra to pay a professional. Would you perform your own root canal? Of course not. Taxes are just as painful and a little anesthetic can go a long way. It will save you hours of frustrated screaming at your computer and who knows, maybe you’ll get a nice toothbrush or some sugar-free gum out of the deal.
Tax season doesn’t have to be that scary. Take some deep breathes and it will all be behind us soon enough… until next year.
**Use a preparer that has some credentials as well, not all preparers are created equal. As always, if you don’t feel comfortable, go somewhere else.