It’s that time of year again! Time to start thinking about tax prep. For some, the mere thought of preparing their taxes is enough to send them into a stress spiral. But it doesn’t have to be that way! With a little preparation and forethought, tax prep can be a breeze. Here are 5 super easy tips that will save you time (and maybe even money!) come tax season.
1. Find Out What You Need BEFORE You Start Prepping
The first step to an easy tax prep is knowing what you need before you start. Gather up all of your important documents like W-2s, 1099s, receipts, etc. and put them in one place. This will save you time later when you’re trying to track everything down.
2. Give yourself AT LEAST 2 Weeks to Prep
Rushing through your taxes is a surefire way to make mistakes. Give yourself plenty of time to gather all the necessary information and fill out your forms correctly. This will save you time (and headaches) in the long run.
3. Make a Home for EVERYTHING
One of the biggest causes of tax prep stress is feeling like you’re constantly losing track of things. To avoid this, designate one spot in your home as the “taxprep headquarters.” This should be a place where you keep all of your important documents, forms, and receipts throughout the year. That way, come tax season, everything will be in one place and easy to find.
4. Keep an Updated Checklist
A great way to stay organized during tax season is to keep a checklist of everything you need to do. I like to divide my checklist into three sections: Information Needed, Action Steps, and Follow Up Needed. This helps me keep track of what I need to do, what I’m in the middle of doing, and what still needs to be done. Having everything laid out in front of me keeps me from feeling overwhelmed and stressed.
5. Don’t Get Stuck on Questions
One of the most common mistakes people make when prepping their taxes is getting bogged down by questions they can’t answer right away. If you come across a question that you can’t immediately answer, don’t freak out! Just make a note of it and move on with your life. Don’t sit and try to figure out those questions right away- make a note of it on in your tax document folder and keep going,.This way you won’t get distracted on the internet and lose your momentum..You can always circle back later when you have more information or have had a chance to consult with a professional
following these five simple tips will help make tax season less stressful and more manageable. So take a deep breath, relax, and get started on your taxes with confidence!