5 Ways to Prepare to Do Taxes

By Clinton Courier | April 20, 2022 |

Nobody looks forward to the tax season. There’s a lot to research and organize, not to mention how stressful and draining the process is. You don’t know if you’ll get a decent refund, or worse, if you’ll owe money, and it can create anxiety for non-experts.

So, we know how easy it is to procrastinate and put off taxes until the last minute. But we’re here to help you change your habits and tackle your taxes with confidence.

We’ll show you five ways to prepare to file your taxes and get the best outcome.

1. Gather Your Documents and Info

Here’s a list of what you’ll need. This is a lot to keep up with, so we recommend you create a checklist:

W-2 Forms
1099 Forms (this varies based on the type of employment)
Social Security Info (For you and any dependents)
Bank account numbers
Loan statements
Business info for business owners
Property statements
Medical/childcare expenses
Job expenses
Charitable expenses

Don’t struggle to fill out all these forms by yourself. Don’t just struggle with it all. Get help from solutions such as Advanced Micro Solutions payroll software.

2. Manage Anxiety

Anxiety during tax season is so common it’s garnered a name: tax-time stress. And it will make you less able to be effective in your life. It affects everything from appetite to sleep to cognitive processes, so you must get it under control.

You’ve already started the process by preparing, which is the best thing you can do for your emotional state. If you’re going through an especially hard time, here are some things you can do to help your stress levels:

Grounding (Pulling yourself out of your thoughts and into the present)
Yoga
Instrumental Music
A hot bath or shower
Breathing techniques
Creating affirmations
Playing with a pet

3. Find Ways to Lower Your Taxes Each Year

This point of advice is timeless, and it starts before you make appointments with an advisor or accountant.

It’s important to catch up on US expat taxes and constantly review your financial position so surprises do not surface at the worst possible time. Staying proactive allows you to make informed decisions early, rather than reacting under pressure once deadlines or penalties are already in play.

Here are some ways you can cut yourself some breaks:

Claim qualifying dependents.
Start a business.
Give to charity.
Create a home office.
Put money into a retirement account.

If it’s too late this year, keep these tips in mind for the next.

4. Choose Your Method

There are three options: file them yourself, hire a professional, or use tax software. You will want to choose wisely, so we’ll discuss the pros and cons of each.

File it yourself by mail: This is a cheaper method, but it isn’t advised. It puts sensitive information at risk and creates room for error.
Do it online: This saves time and spares you a drive. However, you don’t get as much guidance or human interaction.
Hire a Professional: This costs more money and time, but you’ll be talked through it by an expert.

5. Do It Early

The longer you put it off, the longer it hangs over your head. Procrastinating tax management will ensure you meet the deadline and lower your chances of tax fraud. However, it also holds you back from other things you need to do and drains your energy, making other tasks much harder.

You’ll automatically feel a little better when a date to plan them is set because you know they’ll get done. You’ll feel even better once the process is completed early and out of the way, so you can enjoy the rest of your spring.

Doing your taxes will probably take up most of the afternoon, so you need to clear your schedule. Make sure no other commitments are taking up your time or thoughts to get the process completed as quickly as possible. Then you’ll need some time to decompress when you get home.

Set Up For Success

You have your documents together. You’ve got your appointment set up. You’re working through your stress. This means you’ve done everything you can do for this year.

Now all that’s left to do is hope for the best and be glad you’re on your way to a much more manageable tax filing process.

Keep these tips in mind as you approach next year as well – the more organized you are and the earlier you start, the better off you’ll be every spring!