Tax season and stress management

Last Updated at: November 04, 2019
452
Tax season and stress management

Introduction

Tax is a compulsory contribution to the state revenue levied by the government on workers income and business profits. A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organisation in order to fund various public expenditures and a failure to pay tax is punishable by law.

It is not only the concern over how much of your hard-earned money goes to taxes but the stress over the actual filing process that gets to most of us.

However, if you are prepared for the tax season, you will make it easier on yourself and get your refund soon.

Tips for managing stress during tax filing

Avoid procrastination

Dealing with taxes at the last minutes creates unnecessary tension and stress. So it is better to resist the temptation to put off dealing with your taxes till the deadline. Be prepared well before the last day so that you don’t miss out on a potential deduction or a source of tax saving and also won’t increase your risk of making an error. Moreover, you file early you will be refunded sooner.

File for free

There is an option to prepare tax return and e-file it for free. If the annual income is below sixty-two thousand we can use a software offered by the IRS. If the income is more than 62,000 we can use free file fillable forms. These are the various forms of free options which are of great use.

Get FREE legal advice now

Don’t panic

No need to panic if you can’t pay what you owe for we can easily set up a payment plan on taxes we owe, as long as our returns are filed up to date. For most tax debts, a payment plan called an IRS installment agreement can be set up online. With this agreement, payments can be spread in small installments and spread over a particular number of years.

Deal with taxes

 It is easy to let a tax problem snowball. However, ignoring the problem will increase the amount we owe towards IRS collections. In addition to the installment agreements the IRS has a tax forgiveness program called offer in compromise by which if we approach the IRS and give them a detailed account on our financial hardship based on our income, living expenses, assets owned we can potentially eliminate a significant portion of our tax debts.

Find ways to claiming deductions

There has always been changes now and then when it comes to tax with respect to deductions and claims. Make sure to do a research to check what are the tax deductions you are entitled to.

Moving expenses – military service members who moved due to a PCS are entitled to deduct reasonable unreimbursed moving expenses

Travel expenses – There is a provision to deduct unreimbursed work-related travel expenses when traveling away from a permanent duty station. On the other hand, if you are a permanent resident of that place, official business travel’s expenses cannot be deducted. If the work requires traveling more than 100 miles from the permanent residence then that travel expenses can be deducted.

Transportation expenses – traveling from one workplace to another or a business meeting overseas can also be deducted

Educational expenses  – It is required that an employer or the law maintain a salary, status or job. This must also serve a bona fide business purpose for an employer

Know your exclusions

Knowing your exemptions will give you a piece of mind to focus on other important activities. For instance, some military pay and allowances can be excluded from your gross income. These exclusions generally include living allowances, moving allowances; travel allowances and death allowances

Seek professional assistance

Hiring a professional legal assistance for preparation service ensures you get credit for every eligible deduction and exclusion. Also, legal experts can advise you on further deductions, if at all you have missed anything.

Reward yourself

It is impossible for us to be frugal every time. After a year or month-long savings and preparation allot something for activities that interest you. You can also surprise yourself with a gift or a night out.

With these tips, the pain of paying for taxes can definitely be reduced.

Tax season and stress management

452

Introduction

Tax is a compulsory contribution to the state revenue levied by the government on workers income and business profits. A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organisation in order to fund various public expenditures and a failure to pay tax is punishable by law.

It is not only the concern over how much of your hard-earned money goes to taxes but the stress over the actual filing process that gets to most of us.

However, if you are prepared for the tax season, you will make it easier on yourself and get your refund soon.

Tips for managing stress during tax filing

Avoid procrastination

Dealing with taxes at the last minutes creates unnecessary tension and stress. So it is better to resist the temptation to put off dealing with your taxes till the deadline. Be prepared well before the last day so that you don’t miss out on a potential deduction or a source of tax saving and also won’t increase your risk of making an error. Moreover, you file early you will be refunded sooner.

File for free

There is an option to prepare tax return and e-file it for free. If the annual income is below sixty-two thousand we can use a software offered by the IRS. If the income is more than 62,000 we can use free file fillable forms. These are the various forms of free options which are of great use.

Get FREE legal advice now

Don’t panic

No need to panic if you can’t pay what you owe for we can easily set up a payment plan on taxes we owe, as long as our returns are filed up to date. For most tax debts, a payment plan called an IRS installment agreement can be set up online. With this agreement, payments can be spread in small installments and spread over a particular number of years.

Deal with taxes

 It is easy to let a tax problem snowball. However, ignoring the problem will increase the amount we owe towards IRS collections. In addition to the installment agreements the IRS has a tax forgiveness program called offer in compromise by which if we approach the IRS and give them a detailed account on our financial hardship based on our income, living expenses, assets owned we can potentially eliminate a significant portion of our tax debts.

Find ways to claiming deductions

There has always been changes now and then when it comes to tax with respect to deductions and claims. Make sure to do a research to check what are the tax deductions you are entitled to.

Moving expenses – military service members who moved due to a PCS are entitled to deduct reasonable unreimbursed moving expenses

Travel expenses – There is a provision to deduct unreimbursed work-related travel expenses when traveling away from a permanent duty station. On the other hand, if you are a permanent resident of that place, official business travel’s expenses cannot be deducted. If the work requires traveling more than 100 miles from the permanent residence then that travel expenses can be deducted.

Transportation expenses – traveling from one workplace to another or a business meeting overseas can also be deducted

Educational expenses  – It is required that an employer or the law maintain a salary, status or job. This must also serve a bona fide business purpose for an employer

Know your exclusions

Knowing your exemptions will give you a piece of mind to focus on other important activities. For instance, some military pay and allowances can be excluded from your gross income. These exclusions generally include living allowances, moving allowances; travel allowances and death allowances

Seek professional assistance

Hiring a professional legal assistance for preparation service ensures you get credit for every eligible deduction and exclusion. Also, legal experts can advise you on further deductions, if at all you have missed anything.

Reward yourself

It is impossible for us to be frugal every time. After a year or month-long savings and preparation allot something for activities that interest you. You can also surprise yourself with a gift or a night out.

With these tips, the pain of paying for taxes can definitely be reduced.

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