Tips to Make 2017 Taxes Less Traumatic
Some people find tax time each year to be a traumatic experience, whether they prepare their own taxes or have someone else prepare it for them. However, the good news is that there are ways to make tax time less painful so if you dread that time of year, follow these tips to make it so much simpler.
The best way to make tax time less traumatic is to become more organized. This may sound easier said than done, but there are a few easy ways to do this that can make a big difference:
- Save your receipts – Keep all of your receipts and keep them together. Whenever you buy something or pay for something, put the receipt with the others.
- Store your receipts in categories – To prevent you having to spend hours doing this at tax time, when you put your receipt away, put it together with other receipts of its kind. In other words, have files or envelopes for receipts from charitable donations, medical bills, deductions etc. When tax time comes, your receipts will already be separated.
Start Preparing Early
There is no need to wait until the last minute to start preparing your taxes. Leaving it to the last minute will cause an enormous amount of pressure and this is often what makes tax time so painful. As soon as you start receiving statements and forms, start getting organized.
Keep Up to Date with the Tax Code
The IRS website has plenty of information, as well as details about changes in the tax code. If you keep an eye on this, you will be able to see how any changes in the tax code may affect you so that you can make informed decisions and be prepared. Similarly, it is important to note how changes to your circumstances may affect your taxes, such as buying a new house, getting divorced or being unemployed. Being knowledgeable about how these changes may affect your taxes will allow you to collect the correct forms and collate the correct information well before it is needed to reduce stress at tax time.