Very few people actively look forward to tax season, but that doesn’t mean you need to approach each year with a sense of dread.
If you struggle to file your taxes and wish there was a way to make this taxing (excuse the pun) task simpler, then the below guide is just what you need.
Read on to discover all the top tips that promise to make filing your taxes feel like a walk in the park. Plus, find out how you can save money on your business taxes with ease.
Don’t wait until the last minute
Although you may be tempted to put filing your taxes off for as long as possible, this does not make the job any easier. In fact, the longer you leave it, the more stressed and pressured you are likely to feel, which can make the task even harder.
Instead, start as early as you can, especially if your tax return is more complex. Remember, the sooner you start, the more time you will have to track down any missing information or documents.
Eliminate distractions
If there are any inaccuracies in your tax return, then this could lead to an IRS audit, something that no one wants their business to be put through.
Therefore, it is vitally important that your mind is 100% on the task at hand when you are filing your taxes. Make sure that you eliminate any distractions, either at home or in the workplace, and focus just on what you are doing.
Before you file your tax return, make sure that you double-check it for any mistakes or inaccuracies.
Check for any new rules
When it comes to credits and deductions, it is crucial that you check for any new rules or regulations before you file your tax return.
For example, the American Rescue Plan Act recently added a new rule for charitable deductions, which could affect your year-end giving and the amount of tax you have to pay.
Other changes include ones made to the child tax credit in 2021 and the earned income tax credit in 2022.
Get help if needed
If you are in any doubt when it comes to filing your tax return or you are not sure what income you have to declare, then it is also better to seek external help.
The IRS provides a hotline that you can use if you have any questions about filing your taxes, although, be warned, this can be extremely busy during tax season. You can also utilize their online resources, which are free for everyone to use.
Alternatively, you may prefer to hire an accountant or financial advisor to file your tax returns for you to eliminate the risk of errors and save yourself time.
The bottom line
If you run your own business or you are self-employed, then there is no getting away from tax season. However, by following the above guidance, you can make this tedious task a bit more bearable and save money in the process.