Finances FYI Presented by JPMorgan Chase
Most of us don’t enjoy doing taxes. They’re a hassle, they’re complicated, and by the time they’re done, you’re ready to pull your hair out.
Fortunately, there are some great strategies you can employ to reduce your stress levels when tax time is upon you.
Plan Ahead
This is a BIG one when it comes to reducing stress. The longer you wait to get documents together, to start filing, and to schedule a tax appointment, the more stressful it’s going to be as the deadline to turn them in looms ever closer. Make your list of necessary documents, and start collecting them as soon as you can. Common tax forms include:
- W-2s
- 1099 forms
- Investment records
- Insurance information
You should also know which deductions and credits you’re eligible for. Getting all of it together as early as possible is a great way to ensure you’re not scrambling when the time comes.
Start Early
This particular tip has multiple benefits. First, and most obviously, the sooner you start your taxes, the sooner you finish your taxes and can reap the benefits of your return sooner. But the benefits of an early start extend beyond just peace of mind.
If you’re doing your taxes by yourself, starting earlier gives you the ability to take your time. If necessary, you can start, stop for a while, and come back again when you’re feeling less stressed.
Even if you’re booking an appointment with an accountant or tax professional, the earlier you get in, the better it is for everyone. Tax pros tend to have a much more open schedule earlier in the season, meaning they can get your return done faster than they would if you’re coming in close to the deadline.
Know Your Deductions
This one can be tricky, but it’s well worth the work it takes. If you know ahead of time which deductions you’re eligible for and have the paperwork to back them up, it makes itemized deductions more straightforward.
Do you work from home? Figure out whether you can deduct parts of your home office from your return. Check on which tax credits you’re eligible for, be it educational, family-based, or something related to your home. Do you get a boost for solar panels on your house? Did you buy a heat pump to help regulate your home’s temperature? You could get a significant rebate as a result.
Knowing what you’re getting ahead of time goes a long way toward making the entire process easier.
Hire a Pro
Finding an accountant or tax professional in your area and paying them to file your taxes for you can exponentially reduce your stress during this time of year. It can be a little pricey, but for most CPAs, knowing the tax laws is their entire job, and they do it well.
Giving them your documents and either sitting with them as they fill out the forms or dropping the documents off and letting them work on their own time can make the season infinitely less stressful for you. On top of that, most CPAs and tax pros have some form of audit protection, allowing you further peace of mind should the IRS want another look.
Follow these expert strategies to make this year’s tax season as stress-free as possible.
Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.
