For most people, doing taxes isn’t something that they’d put up on their list of favorite activities ever. But it doesn’t have to be painful. All it takes is a little bit of planning, preparation, and foresight into the matter, and your taxes will no longer be a nightmare scenario, but rather a walk in the financial park that you skip through once per year.
Five tips in particular that you can follow to make the process as easy as possible include making sure that you know tax debt relief laws, picking a reliable software package to use, choosing a tax preparation company if you don’t want to deal with any of it yourself, keeping all of your finances organized during the year, and knowing what risks there are from the IRS.
Know Tax Debt Relief Laws
Sometimes taxes lead to debt. There are a million reasons for this, but if understanding your personal taxes is a priority, and you’ve run across a situation like this in your past (for a business, maybe, or through divorce proceedings) then you know that debt relief laws are going to be on your side.
Pick a Reliable Software Package
One way to handle taxes consistently is if you purchase tax return software and use it year after year. The learning curve usually isn’t too steep, and after the first year of entering in all of your information, the following years will go even more smoothly.
Pay To Take It Off Your Mind
In some cases, taxes can be more complicated than a single person wants to deal with. If you’re messing with complicated things like businesses, churches, charities, non-profits, or have a bunch of money floating around in various loans, then at that point it makes sense to hire a tax preparation company to be sure to follow the rules.
Keep Things Organized Throughout the Year
Nothing is more frustrating than trying to do your taxes at the end of the year, but not being able to find receipts or other documents that you need. To prevent this, all you have to do is every single day, collect your receipts into a single place, make sure that all of your email indications with purchases are in order, and tag all your digital information as necessary. Five minutes every day will save you countless hours of mayhem later during tax season.
Assess the Risks of the IRS
Sometimes tax return forms can get complicated, and you just want to skip steps or fudge numbers. To a degree, this won’t make any difference in the overall scheme of things. But, you do want to make sure that you aren’t doing anything that will get you audited, especially if you don’t have paperwork to back up your claims.