It’s Only January And I’m Already Fretting About Income Tax Time
January 16, 2009 – 12:22 pmIf you start thinking about filing your taxes as soon as the New Year comes, you are not alone. This is not a pleasant topic, to be sure. Most of us feel anxious, even a little queasy, waiting and watching for our W2 or 1099 to appear in the mail.
One thing you can do instead of gnashing your teeth and wringing your hands is gather your information. This is a good use of your time, as you’ll be ready to hit the ground running as soon as you receive the income documents you need to file your taxes. Depending on your particular circumstances this could include, but are not limited to, medical bill receipts, medical premium payments, utility bills, tuition bills, repair bills for your home or business, mortgage interest statements, dividend statements, job related travel information, and any other documentation you’ve typically used in previous years. This list does not apply to everyone, nor is it all inclusive. However, the point is to start gathering the information now; it will relieve some of the stress you feel now as well as some of the panic you feel on April 15th.
Have you always filed your own taxes, or have you used a tax filing service or tax accountant to file for you? Every tax year you need to re-evaluate your previous experience and decide, once again, if this is the right way to go this year. Can you afford to hire someone else to do your taxes? Can you afford NOT to? Review your needs every year.
You have three months until tax time so don’t start to panic yet, but do start to prepare. If you join the ranks of the tax preparation procrastinators, you not only succeed in creating a whole lot of stress for yourself and your family, but last minute tax preparers often make costly mistakes. Isn’t it worth a few hours of preparation to save stress and money? Always!