5 Simple Steps to Make Filing Taxes Easier and Get Your Refund Sooner
Tax season is just around the corner, and for many of us, it's a time of stress and anxiety. But what if you could make filing your taxes easier and get your refund sooner? With these five simple steps, you can take control of your tax preparation and avoid last-minute headaches.Step 1: Set Money Aside for Taxes You Owe
If you expect to owe taxes to the IRS, it's essential to set money aside now. This will help you avoid a bill that you can't afford come Tax Day. Financial advisor Anna Sergunina recommends moving your estimated tax savings into a separate account as income comes in. 'This creates a clear mental and financial boundary, reduces the temptation to spend money that isn't truly yours, and makes tax payments feel far less stressful when they're due,' she says.
Step 2: Familiarize Yourself with the Paperwork
Understanding your tax return can be intimidating, but it's essential to familiarize yourself with the paperwork. Certified public accountant (CPA) Anjali Jariwala recommends setting up a meeting with a CPA and having them walk through your return with you. 'They can help you identify key numbers such as wages, business income, and itemized deductions,' she says.
Step 3: Organize Your Documents
Organizing your documents is crucial to making filing taxes easier. Jariwala recommends creating a checklist of the documents you need to gather and setting up a folder on your computer specifically for tax supporting documents. 'Did you just make your property tax payment? Great, file it in the folder,' she says.
Step 4: Decide How You Will File Your Taxes
You have several options when it comes to filing your taxes, including working with a CPA or using tax software. Researching these options now will help you determine which one makes the most sense for you and avoid last-minute scrambling.
Step 5: Make Last-Minute Contributions
If you're eligible, consider making contributions to your health savings account (HSA) or individual retirement accounts (IRA). These contributions can be made until April 15, 2026, and can help reduce your tax bill.
By following these five simple steps, you can make filing taxes easier and get your refund sooner. Remember to set money aside for taxes you owe, familiarize yourself with the paperwork, organize your documents, decide how you will file your taxes, and make last-minute contributions. With a little planning and preparation, tax season doesn't have to be stressful.
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