We are still hearing sighs of relief that tax season 2017 is over. “Now we all look forward to a Stress-free 2018 Tax Season,” said no person ever!
Unlike many of our blogs, this article is going back to basics, to some simple planning precepts. Some of them, you may already know and follow. However, every tax season, we counsel people whose lives move so quickly they miss out on baby steps. For them, tax season becomes a challenging time of stress.
Tax Planning To Keep You Stress-free
In honor of our many stressed out clients, we drafted this blog of basic keys. These keys give business people a quick guide for tax planning. Here at AP Accounting and Tax Services, we have heard many people vow that next year they would not stress out over their taxes.
To them, we say, “Don’t let that be a fleeting thought. It’s a valuable thought. But if you do not take some first steps now, you could end up just as stressed, harried and hassled during the next tax season as you were during this one.
AP Accounting Instant Planning Keys to a Stress-free 2018 Tax Season: A Mindset for Organization
Live Free and Feel Free. Start Your Financial Planning with A. P. Accounting and Tax Services.
So, in the next two blogs, let’s take a look at the easiest Keys in the AP Plan of Attack on the 2018 taxes. Our goal is to have a smooth transition into 2019, without any frantic tax season stress. We tell young or new taxpayers that we know it isn’t easy. “Preparing tax returns, gathering the necessary documentation, and double-checking that everything you filled out is correct can stress out even the most organized person.”
These keys are even more important if you find yourself challenged by basic organization. And most of us are, at least a to a small degree.
Where Do Taxes Fit Into the Busy Mindset, Life Plan, Business Plan and the Big Picture of Life?
Do you know one of the secrets to reducing stress in any situation is to enhance organization? And the Experts at Inc.com have told us that one of the greatest secrets of life is to focus your attention on prioritizing.
Now, AP Accounting and Tax Services don’t presume to tell you all the secrets of life. However, we do have some keys for you in regards to reducing the time and stress spent on taxes.
1. Thinking Beyond the Shoebox:
For some reason, that old cartoon of the lady who brings her accountant 2 big shoeboxes and a bushel basket of receipts is not very funny to us. Perhaps it is because we have met dozens of folks like her. Some people think that is organization. By all means, save your receipts, but do so in an orderly and modern manner.
Perhaps you can scan them or use digital ones through which can, in turn, be printed. If you do collect them in a box, at least make notes on them so you remember what they are all about. Have you noticed that some receipts fade when saved over a few months? Annotate them. Scan them. Save to your computer.
We agree with Inc.com that you must save, or track, “any items you think you might even want to claim as a business expense.” At least make a PDF of all business receipts and remember to store both the original and digital copies. And then remember “to back up your records, either manually (with an external hard drive) or with a cloud service provider.” After all, fire or flood can claim a computer. And home and office fires happen more often than you realize.
2. Optimize Your Choice: To Itemize or Not
“Wow, Do You Mean I Should Start Planning Next Years Taxes Now?”
From the beginning of the tax year, it would be good to know whether you will itemize deductions or use the standard deduction. “Making that decision now will help you figure out what you need to save and keep track of during the year.”
Think Before Spending: Just because you think your dollars are tax deductible doesn’t mean you should spend more of them! At AP Accounting, we wish we could make every business dollar you spend deductible. For the 2017 tax years (filling in forms for 2018), the expenses you are seeking to itemize (specifically medical) must exceed 10 percent of your adjusted gross income (AGI).” We say, to optimize, you should itemize but economize.
3. Commit to Planning
We invite you to commit to financial planning. It’s never too late or too early. Learn more about your fiscal health. And you will find financial planning more reasonable than you might believe. We will work for you to make sure you can maximize your deduction.
If you know you will itemize, then sharpen your awareness of documentation of all your expenses. Keep detailed records of medical expenses, charitable contributions, state and local taxes, foreign taxes, mortgage interest deductions, and health insurance.
Keep track of your donations and dues. Do not lose that great little receipt from your local charity. If you have not received your documentation by the end of January 2019, send them an email or give them a call.
“I’m already planning how I am going to spend next year’s Tax Refund.
4. File your finance documents
Life has changed and instead of a gray file box, you might want to simply auto-file your special financial documents. Watch out for all of your:
- Bank e-statements, credit card e-statements,
- retirement account information,
- and any business expenses.
Use a tax file in the inbox or a folder in your computer. Keep your eyes on the prize. More planning and a little more work now pays off later. And it means less work and a calm, stress-free tax season in 2018. Thank you for reading our back to basics keys to stress-free plans for your tax situation. We know many clients know about these keys, but if more people followed them, we would not see so many stressed-out clients during tax season.
