If taxes elevate your blood pressure, you’re in good company. Everyone has their own style when it comes to managing their taxes and responding to the inevitable stress tax season brings.
Aaron
Tax Tip: One Word Document that explains it all
Each year, I keep one Word document that I update with relevant tax information. I note relevant life events like changing my address, opening a new account, changing insurance, making tuition payments or donations, or even starting a company! Each event has a date, so I can match to other documents or forms. At the end of the year, I go through my hand Word doc and ocnfirm that I have all the tax forms to cover those “life events.” If I had to do it all at the end of the year, I would certainly miss something…
Tax Flaw: I just can't remember
When it comes to most things (especially numbers), my mind is like a steel trap! But, when it comes to taxes, I feel like I have to relearn everything every year. That’s why I need my trusty Word doc! I always double check the standard stuff by talking to my family, my partner, and other with the hope that someone would remind me if something slipped through the cracks.
Less Stress: Trust the experts!
To me, I know that I could do my own taxes, but I don’t want to do my own taxes… I know myself well enough to know that I would prefer an expert’s help. My way to de-stress is to let the experts do the expert thing. I set up a short call every year to ask a few questions, and they always remind me of something that I would have missed myself.
Nahel
Tax Tip: Save time, invest in a CPA
As a business owner, time is your most valuable resource. I learned quickly that working with a good CPA will save time, and ultimately money. Don’t think of hiring a CPA as an expense, consider it an investment.
On top of that, your network is your best asset when it comes to finding a quality CPA. Talk to your friends and colleagues, their recommendations and experiences will make it clear who you should hire… and who you shouldn’t.
Tax Flaw: Turbo Tax
Filing online through TurboTax or similar software is common and often a great approach. However, make sure to save your tax returns (specifically in PDF format) and save it to your computer. Next year, you will most likely need last year’s returns. TurboTax will charge you a significant fee to unlock them if you keep them exclusively on their site.
Less Stress: Break it down
I like to break the tax process down into smaller pieces and start early. This approach makes the process much less intimidating than doing the entire thing in one afternoon during the second week of April.
Plus, my wife and I just got a puppy, so I will definitely take breaks to play with him (we’re just waiting for the day our puppy figures out tax deductions in dog treats)!
Lexi
Tax Tip: Keep a hard copy and organize it by year
It’s always helpful to have a hard copy of important tax documents, so I like to print and save everything that I might need in the future. I even organize it by year in a filing cabinet, making it easy to find the right documents when I need them.
Tax Flaw: Preventing Procrastination
It’s easy to procrastinate filing taxes. So, I like to make it a competition with my loved ones. To win, you must successfully file your taxes first. Since beginning the competition, no one involved has struggled to meet the tax deadline.
Less Stress: Relaxing when taxes are just too much
Even when you do everything right, taxes can get stressful. When I need a break, I like to spend some time doing something fun but somewhat productive, like taking a cofee walk. It’s always easier to take on a frustrating task with a fresh mind.
Do you have tax stress tips, want to share your own tax fails, or are looking for resources to support your solo practice? Send us an email, drop us a comment – we want to hear from you!
Contact Information:
Lexi@joinsoundboard.com
