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Management
Stress Management
Making Taxes Less Taxing
Making Taxes Less Taxing
For many Americans, April 15 is the most stressful day of the year.
The date when federal taxes are due can strike fear into the
hearts of the most stoic taxpayers.
Writing that yearly check to Uncle Sam can be quite distressing,
especially if you find you owe more than you thought you would. What can be especially
troubling is that the stress can stay with you, year in and year out.
But for many people, the stress begins long before the filing
deadline. It may occur as early as December when the tax forms first arrive in the
mail.
Or it may happen when your W-2 form comes across your desk at
work. It may happen when you hear about tax season on television.
Even getting your yearly interest statement from your bank might
be enough to put you over the edge.
You may know some people who seem completely relaxed when tax time
rolls around. It seems that they have everything in order, and they have little to worry
about.
For such people, tax day seems to be a virtually stress free
experience. You will find them whistling through the hallways at work while you are hunched
over your calculator, wondering whether you can pay your tax bill.
You need to realize that you can handle the stress of tax season
without going ballistic. However, this means that you must be pro-active when it comes to
handling your taxes. A little bit of planning can go a long way to reducing your taxes and
your stress level.
To begin with, it could help you immeasurably if you seek the
services of a financial planner. He or she can help you to take control of your finances,
which can reduce your stress level considerably.
Also, the financial planner can help you to employ certain
strategies which will enable you to reduce your tax bill.
Next, you have to seriously consider whether it will do you any
good to do your taxes yourself. While figuring out your own tax bill can give you a feeling
of control, it can also increase your stress level tremendously.
Therefore, you might seriously consider hiring a tax accountant to
handle the stress of your taxes. While such a move will not eliminate your stress entirely,
it can seriously reduce it.
Keeping folders of all the documents you need for filing your
taxes can also lessen your stress.
If you keep the folders current throughout the year, you will not
be in a mad rush at tax time to find the papers you need to file your return. You might
consider color-coding the folders for easy reference.
Also, keep the folders in a central location. While a filing
cabinet might be the best solution, you might also consider a hope chest, an end table, or a
desk drawer.
And be sure to keep all your records for at least three years in
case a question arises about your return later on.
Another strategy for reducing your stress is putting an end to
procrastination. While it might be tempting to wait until the last minute to file your taxes,
it only increases your stress level.
If you file your taxes long before the due date, you can rest easy
when April 15th rolls around. You might be amazed at how much easier it is to deal with tax
season when you have done some advanced planning.
If you find yourself facing a large tax bill, chances are you will
feel stress, no matter what time you file. Therefore, you might consider opening a savings
account specifically earmarked for taxes.
This way, you can save for tax day throughout the year. Another
option is to increase your withholding on your weekly paycheck so that you do not have such a
huge bill to pay at the end of the tax year.
There is no reason to become overly stressed over taxes. They are
a natural part of American life, the means by which the government is able to
function.
If you take a few pro-active steps, you can significantly reduce
tax-related stress. It may be hard at first to break old habits.
However, once you do, you might be amazed at how relaxed you feel
when April 15th rolls around Making Taxes Less Taxing.
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