If you are sitting back thinking to yourself, “I have until April 17th. That’s like, what? Two months, right?” you are the prime case of someone that should start your taxes today. Here is a simple run down to help you get your taxes done before the tax man comes and beats down your door.
Preparation
Mind you, I am no “tax guru”. Ask my wife. I also don’t have very complicated taxes to prepare, although that has changed a bit since I have taken on some consulting and writing work in the last year. That being said, here are some simple preparations to do your taxes yourself:
Execution
There are some great apps nowadays that can help you take care of your taxes. The most popular being TurboTax, yet there have been new apps that have sprung-up the last few years that work just as well. One such piece of software was presented to me from a friend called FreeTaxUSA. It’s all done online, which can always be a little scary, but I and many others haven’t had any issue. The nice thing about FreeTaxUSA is that Federal Income Tax e-filing is free and State filing is only $9.99. FreeTaxUSA also keeps your information for the next year so you don’t have to do as much work, allows you to print out and save your filed taxes, and gives you all the information that you would need if you were audited (even audit assistance for a small fee). Not too shabby. Working through FreeTaxUSA is pretty easy, especially for people that don’t have complicated taxes. However, I did have a little trouble this year taking care of my “business income” from all of my side work. I don’t think that it was the software’s fault; more of an “I’m sort of new to this and I don’t really know what I’m doing” type of problem. If you are struggling using the self-service tax apps, then maybe someone that you know who is knowledgeable can help you out. Or, there is always just biting the bullet and taking them to a professional.
Re-preparation
If you had a rough time preparing your taxes this year, start keeping track of and organizing your information today for next year’s dreaded tax season. We have talked about going paperless this year, so a good thing to do would be invest in a decent scanner and start digitizing all of your important documents. This will keep your stress level down to a minimum during tax season 2013. Another good thing to do if you make some money on the side, would be to use a tool like FreshBooks to keep track of all of your invoicing. It’s a great to make the difficult act of invoicing not that difficult. It also gives you full functionality for three clients for free. FreshBooks is quite the helpful tool at tax time for anyone that has their own business or side work. Just remember to try and keep track of everything that will be used for next year’s taxes. Add a reminder to your weekly review to “tie up tax’s loose ends”. This will keep you sane next year.
Conclusion
Yes, tax season does suck. And not just because you have to give the Government all of your money, but because it can be stressful and fear-inducing, especially when you don’t know what you are doing. But remember; it’s only scary and overwhelming if you let it be. Instead, prepare for your taxes, execute, and re-prepare every year to reduce the “tax season overwhelm”. (Photo credit: Dollar concept with silver dollar via Shutterstock)
