Tax season is upon us again- how quickly it seems to come every year. Individual tax returns are due in one week and if you haven’t filed yet, you might be feeling stressed and anxious, waking up in cold sweats in the middle of the night. But there is still time and no reason to be worried, as long as you are smart and logical about getting organized and filed in time.
1. Focus on what is important: Don’t analyze every receipt and bank statement. Know what is deductible and therefore relevant to your tax prep
2. Use time wisely: Don’t spend your time chasing small deductions, bigger expenses save the most on taxes
3. Have a plan: Use a free checklist from an online tax filing service
4. Don’t invite stress: Audit triggers like reporting business loss year after year, filling out your Schedule C with even, rounded numbers, claiming large deductions on minimal income, and running a cash business will be a major cause for unnecessary stress
5. Technology is your friend: Use an automated accounting system that tracks your tax-deductible expenses and income
6. Outsource to a pro: The easiest, stress free way to complete your taxes is to hire a professional that way you can continue focusing your effort on your business and making more money while your accountant does what they are trained to do
7. Buy yourself time: If you are running late and know you’re not going to file on time, file for an extension. Rushing through heightens the chance for errors
8. Don’t stiff the IRS: If you owe money- pay. File your return on time and if you don’t have enough money get on a payment plan
Getting organized is the most important thing to remember when filing your taxes because a small mistake can lead to massive blunder. While there is limited time left to file, there is no reason why you can’t file correctly and on time.