Making Tax Season Simple
For some individuals, the early weeks of the new year that mark the onset of tax season can cause undue stress and panic.
As tax a preparer myself, I want to share some advice with you to help alleviate some of those anxieties so you have an easier time tackling your tax return.
Like with anything, take a step back to breathe. Keeping a level head and thinking clearly will do you much more good in the long run than panicking. Something I hope will ease your mind is that you shouldn't necessarily be in a rush to file. I understand wanting to receive your refund as quickly as possible, but some statements don't get mailed until February or even early March. If you file your return before receiving those documents, you may need to file an amended return, which will further delay your return being processed. At the same time, however, don't put off filing your return until the last moment; If you run into any problems, you may end up incurring penalties and interest that you could have otherwise avoided.
The best way to begin each new year and prep for tax season is to keep your documents organized. Pick a safe location in your home, such as a filing cabinet or safe, and place all of your forms, documents, and letters in that location as you receive them to avoid misplacing them.
As you receive your documents, I advise you to review them carefully for any mistakes. Be sure your name, address, social security number, etc are correct. If your name and social security number do not match, there could be a delay in processing your return. If this happens, you will need to contact your employer and have them process a corrected form.
If you own a business, you also need to keep track of all documentation of your income and expenses. Keeping all of your important documents together and organized is the easiest first step to ensuring a hassle-free tax season. As well as tracking your income and expenses throughout the year. This will allow you to see where you are sitting during the year and if you need to spend some money before the end of the year. This will also make filing your return at the end of the year much less stressful.
I would also advise you to reach out to a tax professional for any tax questions you may have. I may not have the answer right away, but I will do the research for you. There have been a lot of tax law changes in the last few years, especially with Covid. I am always here to help, so do not be afraid to reach out.
Since we are at the beginning of a new year, it is beneficial to look over your pay stubs to be sure that enough state and federal taxes are being taken out of your pay. If you need to make changes or corrections to your withholdings, it's in your best interest to fill out a new W-4 form as early in the year as possible. I have had some clients come in and not realize that they had zero federal taxes taken out for the whole year. It’s not fun to give bad news to anyone, so I try to help clients figure out their withholdings throughout the year to help make sure they will not owe additional tax at the end of the year, if avoidable.
I hope everyone has a stress-free tax season. And if you have questions, please don’t hesitate to ask!
Brooke Bulman
Brooke is the money mind and organizational mind on the She Unites Board of Directors. By day she is a staff accountant for AccounTax Solutions LLC. By night she is a dog mom to two fluffs and busy planning her wedding that she will make as low-key as possible. We are feeling victorious in convincing Brooke to share her introverted wisdom with us.