Ease The Anxiety of Tax Season by Planning for It Now
Ready or not, tax season is here! For many people, this time of year can get stressful quickly, but there are some things you can do to ease the anxiety because April will be here before you know it!
Big picture, from a budgetary or cash-flow standpoint, plan now for what you think you may owe. This will help prevent a 911 fire drill in the second week of April as you try to pay the bill. As you begin your tax preparation, here are three helpful tips to ease the anxiety of tax season.
April 18th Is the Deadline
Because Emancipation Day is observed on the 15th in Washington D.C. this year, the tax filing season will end on April 18th. The Internal Revenue Service (IRS) began accepting individual tax returns on January 24th, so now is the time to gather your papers to beat the rush. The IRS is still managing a backlog of 2020 returns from last year, so the sooner you can submit your tax filing, the better.
Collect Important Documents
Be on the lookout for your W-2 forms, 1099s, and any other tax-related information you will need to complete your 2021 return. Also, start collecting things like charitable contribution totals, property taxes, mortgage interest, and any other additional taxes you paid last year.
Contact A Tax Advisor
If you wish to do your taxes yourself, we strongly recommend a software system because there are so many things that change year by year. Especially over these last couple of years with COVID, where laws are changing, and things are going into effect for a determined amount of time then going away.
That said, we think there’s a real value in having professionals on your team. If you have any discomfort doing your own taxes, or you have a lot of moving parts, reach out to a tax advisor, Certified Public Accountant, or accountant. A tax professional can be invaluable and can help you take advantage of possible deductions that weren’t previously on your radar.
If you have questions about your financial space, give us a call at (704) 987-1425 or visit us at www.northmainfinancial.com. If you wish to schedule an introductory meeting, we would be happy to meet with you at no cost or obligation to you.
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These Blogs are provided for informational purposes only and should not be construed as investment advice. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not necessarily reflect the views of SagePoint Financial.