Tax Time Terror: A Prevention Guide

You may be thinking that tax time is over and done with. Thank goodness; you don’t have to think about that again for months. Not having to stress over every little aspect of your financial accounting for awhile; putting the calculator to the back of the drawer and ignoring it – such blissful freedom!

 

Of course, it’s this attitude – that taxes are only something you need to pay a lot of attention to once a year, right before filing – that causes a problem. Taxes are inevitable; you’re going to have to do them, no matter what happens. The earth is going to keep on turning and that means that while you may revel in the freedom of finally being free of the burden for now, it’s only a matter of time before it comes screaming back to you.

 

If you’re fed up of being stuck in a cycle of forgetting then puzzling over your taxes, perhaps it’s time to change your ways? Perhaps it’s time to make filing your taxes easier? Not only can this help erase that sudden panic as the deadline looms and you’ve yet to even start, but it can also give you a greater insight into your spending, how you’re managing your debts, and where you need to pay a little more financial attention.

 

All you need to escape the cycle is a little forethought and some handy tools to send you on your way…

 

#1 – Incoming/Outgoing Trackers

 

Along with a pay stub generator to help keep tabs on what you’re earning, an expenditure tracker is an essential to keeping an eye on where your money is going. It can help you track your expenditure on items that are tax-deductible, as well as ensure you’re never tempted to overspend.

 

Both of these can be obtained digitally, so there’s no need to worry about extra piles of paper. Along with the generator, you can track expenditure using any one of a number of apps designed just for that purpose. Bringing these two tools together will give you complete control over your credits and debits, so you don’t need to chase down old purchases as you rush toward the tax deadline next year.

 

#2 – Brush Up On Your Tax Law

 

There are a wide variety of different tax laws that might apply to you, so a session to sit down and learn exactly what you should be paying and when is beneficial. This is even true if your employer handles your tax; it’s perfectly possible to be put on the wrong code, falling foul of some of the oddities of the system, and end up paying more or less than you should be.

 

#3 – Monthly Brush Up

 

Every month, set aside an hour or so and ask yourself: “if I had to file my taxes tomorrow, would I be able to do it?”

 

This can help bring clarity to how well your management strategies are working. With the above measures, you can find yourself tempted to follow them and assume it’ll be easy from there – which might not be the case at all. You still have to check in and make sure everything is ticking along as it should be. This also gives you the benefit of being able to track down any discrepancies much closer to the time of the problem, rather than months down the line when you might have forgotten crucial details.

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