Tax season and stress management

Last Updated at: Jul 09, 2020
0
1187
Tax season and stress management
Tax season and stress management

Introduction

Tax is a mandatory payout to government revenue levied on company employees salaries and earnings. 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 to minimise stress

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.

Make an action plan to avoid any task-based stress

Stress often comes from having so many things on your hands. For example, if you were told to anticipate 500 tax returns, of course, you would be anxious. So, take a move back and prepare the workload. Seek to split 500 tax returns so that you can do a portion of that every week. This would not only make it easier to complete a humongous mission, but it would also offer a short-term target for yourself.

Preparing an action plan will help move the attention from the dozens of separate activities to one significant one. Do not start on the next until you can get this one thing done.

File for free to avoid money-related stress

There is an option to prepare a tax return and e-file it for free. If the annual income is below sixty-two thousand we can use 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 instalment agreement can be set up online. With this agreement, payments can be spread in small instalments and spread over a particular number of years.

Deal with taxes

It’s easy to let the tax problem spiral down. However, ignoring the problem will increase the amount we owe towards IRS collections. In addition to the instalment agreements the IRS has a tax forgiveness program called an 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 have always been changes now and then when it comes to tax with respect to deductions and claims. Be sure you do a research and confirm what are the tax deductions you are eligible 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 travelling 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 travelling more than 100 miles from the permanent residence then that travel expenses can be deducted.

Transportation expenses – travelling 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 peace 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 to avoid alleviating stress

Although several approaches can help you alleviate stress throughout the tax season, there is only one technique that will still enable you to keep taking on new clients without adding additional staff. It is outsourcing tax preparation.

What makes tax outsourcing profitable and reliable is the flexibility that it provides. Using the outsourcing provider to manage multiple activities, such as dealing with self-assessment, reporting, estimating revenue, and maintaining compliance, based on the requirements. Your professional help will customize their deals to fit your unique needs. The goal is to encourage the third party professional to manage the unnecessary workload so that representatives of the in-house staff can concentrate on quality control.

Hiring 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

There’s no question that the crazy tax season is challenging for accounting professionals. Yet that doesn’t mean you’re going to flame all ends of the fire. Seek to keep a balanced lifestyle and don’t neglect your fitness over hard-working hours and timelines. Eating healthy food tends to maintain the energy rates moving up. Acting 24/7 and sacrificing your sleep habits ultimately hamper your efficiency and render you vulnerable to errors. Seek to take daily day-long breaks and relax, if necessary. If your schedule permits, take a quick stroll or try office workouts to maintain your physical and mental stamina running.

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.