Many of us grumble about taxes – a responsibility we share as citizens. Particularly around tax season, we often find ourselves wanting to delay the process. However, this can lead to unnecessary stress and is not advisable. If you need more information about taxes, check out IPVA 2018 for details.
Procrastinating on important tasks, like taxes, can result in added tension. Perhaps you’re not one to put things off; it’s just that your hectic life sidetracked you from your tax duties. Regardless of the reason, taxes must be filed. Don’t fret if you’re delayed or if you’re a foreigner, there are ways to manage these situations, such as the foreign earned income exclusion.
Here are some tips to stay on top of your taxes and avoid last-minute panic:
1. Weigh the option of an extension: If you’re running out of time, it may be wise to apply for an extension. This will give you an additional six months to file, free of penalty. However, remember that you are still required to pay your taxes within this period, irrespective of the extension. Utilize the Profit and Loss form to gauge the likely amount of tax you owe.
2. Formulate a payment plan: If you can’t pay your taxes in full, don’t worry – there are plenty of options. Consider a short-term payment plan, or if you’re going through financial hardships, a payment extension could provide you up to a year to pay off your taxes. Prioritize estimating your tax, so you understand ahead of time what you owe, and can plan accordingly.
3. Delegate who will handle your taxes: If your life is complex with multiple sources of income, it’s better to hire a professional to guide you. Taxes may seem challenging but a seasoned expert can make the process more seamless and less stressful.
4. Organize your documents: Before you begin, gather all necessary paperwork. This includes W2s and 1099s, which report your annual income, as well as anything related to deductions or expenses such as medical bills, childcare costs, and charitable receipts.
5. Initiate the process: The sooner you start, the less anxious you will feel. File your taxes promptly, and remember that every year’s taxes must be postmarked by April 18th to be on time. You can opt to file online or mail in.
