Tax time is stressful for everyone, but it’s a necessary civil responsibility. How can you make it easier and reduce the overwhelm? Here are our top recommendations to help make filing your taxes for 2022 easier.
Easily File Your Tax Return Online
This option lets you bypass the in-person appointments and the need to gather physical copies of all your paperwork. Instead, you can keep everything digital and easily accessible when you file an online tax return each financial year.
E-filing is often far less expensive than traditional tax filing and offers a simple, step-by-step process to help you report as accurately as possible. Reliable online services will even have a tax expert personally review your data to ensure everything is in order before sending in the final version.
Keep Track of Receipts Digitally
Managing expenses and receipts is a tedious process but a crucial one. If you want to ensure you receive as many deductions as possible, you must have detailed records of all expenses.
Gone are the days of shoeboxes full of paper receipts! Now, you can easily keep track of your receipts right from your mobile device with platforms like Shoeboxed. This is more than just photo storage or scanning app.
Shoeboxed allows you to extract valuable data from your receipts and compile expense reports. If you’re behind, you can request a shipping envelope, fill it with receipts, and they’ll scan them for you.
Digitally Organize Your Important Documents
Have you ever stared at your calendar, remembering today’s appointment to meet your accountant, only to realize you have no idea where all the necessary documents are? We’ve all been in similar situations, underprepared and against the clock.
Take this obstacle off the table by digitally scanning and organizing your documents, ensuring they’re in one place for easy access and tracking.
Use a document scanner with OCR capabilities and create folders on your hard drive to strategically organize any important documents by category. Be sure to name each document something that clearly connects to what it is and the year it was created.
Use The Same Card For Expenses
It’s easy to stay organized if you charge all of your expenses with the same form of payment. This will collect all expense data together on one monthly or yearly statement. It will also make collecting documents much easier during tax time.
If this isn’t possible, download an expense tracking app to help you monitor and track spending and deposits. Also, check your banking app. You may be able to access additional records there, such as all debits and credits, as well as copies of canceled checks.
If You Need An Extension, Get One
There are no prizes for whoever files their taxes first. If you’re not ready when the time comes, it’s okay! Simply file for an extension and give yourself the time you need to get it done properly. This will also give you the opportunity to have an expert review your data.
Typically, a tax extension will grant you an additional six months. This will seem like forever when you first get it but don’t let it sneak up on you. Time will pass much faster than you think. Use a reminder app to keep you on top of the individual tasks you need to complete as the new deadline approaches.
Streamline Your Tax Preparation
These are simple tactics you can start using now that will have a big impact come tax time. Start with small steps, and you can look forward to an easier tax filing experience.
