Yahoo Finance I’m an Accountant: Here Are 7 Ways To Make Tax Season Less Scary
Is there any date more dreaded each calendar year than Tax Day? Even if you have a pretty good understanding of how to file your taxes, many Americans still get anxious about the impending tax season. This is especially applicable with Gen Zers, as 30% of Americans ages 18 to 24 told GOBankingRates they would rather spend the weekend with their in-laws than file their taxes.
Regardless of which generation you belong to, it is possible to get comfortable with tax season.
GOBankingRates spoke to three tax experts: Ines Zemelman, EA and founder at TFX, CPA Tom Wheelwright and CPA Robert Persichitte. Here are their seven best approaches to making tax filing easier.
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Set Your Own ‘Monthly Tax Deadlines’
Instead of waiting until Tax Day — which is April 15, 2024 — Zemelman recommends marking a specific day each month on the calendar as your own “tax filing deadline.”
What does this mean? By this deadline, Zemelman said you should have gathered and organized all of your monthly checks, bills and any other tax-related documents into one place, like a cloud folder.
“This proactive approach not only helps you reduce stress but also to discover opportunities to lower your tax bill or get a refund,” said Zemelman.
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Identify What Makes You Worried and Find Answers
As you begin to get organized for the tax season, filers may still have some tax anxiety. If you find this is true of your situation, Zemelman recommends identifying your biggest tax concerns and gathering information to address them.
Let’s address two common areas of tax anxiety: missing information and lack of full tax understanding.
If you’re concerned about not having all of the necessary supporting documents, don’t panic. Zemelman said the IRS will send you a 12C letter requesting any missing documentation in the event something is overlooked.
As for not fully understanding everything about the tax code, this is much more omnipresent than you’d think. One example from GOBankingRates’ January 2024 taxes survey is that 42% of overall Americans said they don’t understand how tax credits work.
This is okay, according to Zemelman, who said the average American is not a tax expert — but you can work with one if you need help.
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Work With a Tax Advisor
Filers who don’t feel confident filing taxes on their own or are overwhelmed by the changing tax code are recommended to work with a trusted tax advisor or CPA.
“Qualified tax professionals have been working with tax laws their entire lives — they can offer clear and straightforward guidance to assist you,” said Zemelman.
Ideally, Wheelwright recommends working with a tax advisor year-round to make filing a breeze and not just on Tax Day alone.
Be Honest
Tax season becomes a million times scarier if filers attempt to cheat on their taxes.
In this situation, Persichitte recommends being honest while filing. Filers who lie are at risk of both extra stress and dealing with serious consequences. Filers caught cheating, Persichitte said, will have higher penalties. They may even potentially face jail time.
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Don’t Miss Deductions
It’s not uncommon for many files to overlook certain deductions. Wheelwright said this is especially true of small business owners.
“Anyone who owns a business should consider taking deductions for a home office, automobile deductions, meals with spouses if business is discussed, continuing education and travel,” Wheelwright recommended.
Ask for an Extension
Filers that are genuinely unsure if they will be able to file their taxes by the April 15 deadline may also request a tax extension for extra completion time.
To make this request, Wheelwright said you can visit the IRS website, or your tax advisor can file an extension on your behalf.
Related: IRS Increases Gift and Estate Tax Exempt Limits — Here’s How Much You Can Give Without Paying
Learn More About Your Taxes
Throughout the rest of the year, you can ease tax season fears by empowering yourself to learn more about your taxes. Persichitte recommends learning more through the VITA program.
“VITA’s main purpose is for volunteers to help low-income people who need help with their taxes, but anyone can sign up for the class and learn how to prepare taxes,” said Persichitte. “When you know what is and is not important, you feel more empowered to make good decisions.”
VITA program training is offered by the IRS, some local community colleges and some libraries. Pro tip: check in with your local branches to see if they offer VITA training and which dates you may register for it.
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This article originally appeared on GOBankingRates.com: I’m an Accountant: Here Are 7 Ways To Make Tax Season Less Scary
