FIVE MISTAKES FOR TAX SEASON

FIVE MISTAKES FOR TAX SEASON

It happens every year and we all have to deal with it—tax season! Tax season is always stressful but by avoiding a few mistakes we can prevent it from becoming more stressful. 

1. Not Spreading the Work

Gathering receipts, keeping records, and remembering every stream of income is a lot to organize but the work load can be simplified by tackling it *at least* every quarter but every month is even better. Do not wait until the year is over to start! 

2. Procrastinating 

Know your deadlines! Quarterly payments, business deadlines, and filing day are key pieces of information. You don’t want to be caught procrastinating and end up with a late fee and more stress. Here’s your reminder that tax season is now! 

3. Not Claiming Cash

When we report our income it means all streams of income, including cash. It’s not only the legal answer but also allows us to “claim” that money in other ways. If you do not include your cash income on your taxes then you cannot include your cash income as provable income when you go to get a loan, buy a house, or apply for anything else. 

4. Avoiding  New Resources 

Is it possible to keep old school records and hard copies and still file correctly? Yes! Is it also a bigger headache than it’s worth? Also yes. Don’t avoid resources and technology because it is there to make our lives easier. There are so many programs, apps, and resources that can track automatically, generate reports, and keep clear records for us! 

5. Not Seeking Help 

I do my best to avoid all of these tax season mistakes and I still find tax season stressful. Along with new resources, there are actual professionals to help! If you are overwhelmed by it all, hire an accountant. This is my biggest piece of advice and also the only way I survive tax season meltdown free.