Rate this article6 Ways to Prevent Tax Procrastination
According to a survey by the Pew Research Center, approximately one-third of Americans do their taxes early because they are anticipating a refund. What this survey is not saying is that two-thirds of Americans postpone their tax preparation or are concerned that they will owe. Unfortunately, a large majority of those who are procrastinating are likely to receive a refund. My point is it is counterproductive to postpone the preparation of your returns given these statistics.
Procrastination in itself may have negative effects on the preparation of your tax return. Those who procrastinate tend to wait until they are up against the wall. The fact that you have placed yourself against the wall will likely cause you to hurry through the return, which usually results in mistakes in an attempt to complete them on time. So then, what can you do this year to keep from procrastinating on your taxes? The five ways listed below should help you file your taxes timely and avoid some unnecessary stress.
1. Place an Early Due Date On Your Calendar
Consider that the sooner you complete your taxes, the sooner you can stop worrying about them. By setting an earlier due date on your calendar you will avoid the issues listed above and you will be able to enlist the help of a professional when they are not up to their eyeballs in work.
2. Use the Organizers and Deduction Gathering Tools Of Your Tax Professional To Help You.
Your tax professional should have a tax organizer and other tools to help you gather ALL deductions legally available. Use these tools to your benefit.
3. Do Your Taxes in Stages
If you feel overwhelmed when you think about doing your taxes, just complete them in stages. Break the tasks down by sections. The best approach is the break it down in the order of the return. If you look at the Form 1040, it will start with wages, then interest and dividends. If you break the tasks down by some logical grouping of sections, it will make it a lot more palatable. If you know going into to the preparation of the return, it is not going to kill your whole weekend, you are much less likely to procrastinate. Once you have these sections determined, you can then allow for the necessary time on your calendar.
You typically receive your information before February 1st of each year. With proper planning you should be able to have the return done each year, before April 15th, without a lot of stress.
4. Make It Fun By Working With A Fellow Procrastinator
Trust me; you are not the only one that procrastinates the preparation of your returns. Talk to your friends about getting together to accomplish the individual tasks together, this will make the tasks not such a lonely event.
5. Seek Motivation From the Positive Aspects Of Filing Early
By filing early (before April 15th) you do not have to worry about any potential interest and penalties for a potential tax liability. If for some reason you have to file an extension, you must make an estimation of your tax liability and pay at least 90% of that balance with your extension. Remember an extension is not an extension to pay, only an extension to file.
6. Think About What You Could Do With The Extra Money You Saved By Filing Early.
By filing and paying your taxes early (before April 15th) you avoid the penalties for failure to pay as well as the interest. Think about what you could do with that extra money. Treat yourself, pay off a debt and feel good about what you have accomplished.
If you need help filing your taxes (even back taxes) or need help resolving an issue with the IRS or State, Legacy Tax & Resolution Services can help. Our staff is dedicated to assisting you with all your tax needs!
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