How and Why to Get a Jump Start on Your Taxes

Tax time has already come and gone, but, before you know it, it will be here again! Don’t make the mistake of not thinking about your taxes until the last minute. All that’s going to do is cause you stress and worry.

Instead, get a jump start on your taxes now, while you still have time, and it will be smooth sailing come April, guaranteed.

Find a Strategy that Works for You and Start Using It

All throughout the year, you’re going to need to keep track of financial information, such as spending, amounts you’ve socked away in savings, investments, deductions, and the like.

Go ahead and find a tracking tool that works for you. If you like to keep things simple, a notebook or a spreadsheet can work. You could also use something a little more modern and streamlined, like a Smartphone app or accounting software. Or, if you prefer the hands-off approach, you could hire an accountant to handle all of that information for you.

It doesn’t really matter which method you choose. It only matters that you use it consistently, and the sooner you start using it, the better.

Get Wise About Witholdings

No matter where you work, there’s a very good chance that your employer withholds some taxes from each paycheck. Now, before things get crazy, is a good time to make sure all the withholding information is correct and up-to-date.

For example, if the amount of hours you work has changed, it could be that your employer didn’t make the appropriate updates and that too much or too little is being withheld. Either way, if you don’t get withholdings straight and correct now, you’re going to have a big mess to sort out come tax time.

Since you’re likely to have a lot on your plate when taxes come due, get at least this part of the equation taken care of and out of the way now.

Create a Plan for Giving

Finally, go ahead and put together a plan for how much, what, and to whom you’ll make charitable contributions throughout the year.

This will make it a lot easier to keep track of all of your giving and to not feel bad about saying no to any of those countless giving opportunities that pop up throughout the year.

It will also ensure that you get all of the deductions to which you’re entitled at tax time.

If you can follow these tips and just, in general, focus on properly preparing for tax time throughout the year, you’ll have a much lower-stress experience all around.