Plan Ahead to Take the Stress Out of Tax Day
April 15 is a dreadful day for many people, simply because it's the deadline for filing income taxes. The truth is this day doesn't have to be ominous or overwhelming. You can reduce your stress and improve your financial future simply by getting a jump on your income tax preparation early.
Gather your records early. Take the time to gather all of your documentation together beforehand so you have everything you need to get started. Gather your past tax returns as well, as these will provide valuable insight for where you can save money on your taxes in comparison to previous years.
Make last minute tax-deductible purchases. Especially if it looks like you'll owe money on your return, before the end of December, make any purchases that can give you an extra tax deduction. If you're self-employed, purchase necessary items for your business.
Donate cash or items. Remember to make your donations before December 31st so you'll receive your tax deduction for this year. Be sure to get a receipt!
E-File your return. There are a number of benefits to e-filing, or electronically filing, your tax return. For example, most E-file software will compute tax credits and deductions for you based on the information that you put in. Plus, if you're getting a refund, it's quicker than mailing your return.
The Bottom Line
The best way to get the most out of your income taxes is simply to get a jump on them early. With planning and preparation, you can maximize your deductions and simplify the filing process without stressing yourself out along the way.