Tax Time - Out of Sight, Out of Mind.
Before I turned over a new leaf I used to put off filing my taxes for as long as possible. Then making a mad dash on April 15 or whenever the deadline happens to fall on that year. After a frenzied day of getting everything organized, itemized and printesized (not a real word but it should), I’d top it off by going to the post office and waiting in a LONG line to get my taxes sent (It’s like waiting in line for Green Day tickets only the people in line are sober instead of drunk and/or stoned). The I go home exhausted but happy knowing that I have 364 days before I had to go through this hell again.
In developing healthy finance habits, I decided that tax time was not a day of reckoning that needs to be put postponed as long as possible - rather a regular task like any other that can be taken cared of quite easily. I’ve broken it up to into 5 parts:
Step 1 - Gathered my W-2 and all other tax related documents: These included forms that detailed interest I paid in my mortgage loans, student loans, etc.. If I didn’t get them yet I’d sign on to the company website and print it off from there.
Step 2 - Use tax software: It’s a lot cheaper than going to the accountant (provided you have a relatively simple tax situation) and it should be updated with all the tax changes for that filing year. Plus it beats those clunky tax workbooks.
Step 3 - File Federal Taxes electronically thru the software. For a fee, you can choose to file your taxes electronically within the software. You have an option of paying via credit card or have the fee deducted from your tax refund if you have one that year. It’s secure and makes sure the IRS gets your taxes quickly and reduces the turn around time in processing your return(i.e. shorter wait time for a refund).
Step 4 - File state taxes online at your state website: E-file is a great service that’s often underutilized. It’s like a stripped down version of tax software that’s convenient, easy to use and FREE! Just go to your state website and look for the online services tab and it should be under taxes.
Step 5 - Use direct deposit: Instead of 6-8 weeks to get your refund, you get it in about 2. Not only will you get your refund faster, you won’t run the chance of it getting lost in the mail.
And that’s it. I’ve been doing my taxes this way for the last 2 years and it’s been great. This year I’ve filled my return February 1st and received my state refund in my bank account on February 12 and my Federal refund on February 15. And since I’ve filled electronically, I should get my economic stimulus payment via direct deposit as well.
And there you have it. tax time is no longer a day of strife for this guy. And since I filled early, tax time is just another nice day in the middle of April.
Thanks for reading.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
[…] RJ wrote an interesting post today on Tax Time - Out of Sight, Out of Mind.Here’s a quick excerptStep 2 - Use tax software: It’sa lot cheaper than going to the accountant (provided you have a relatively simple tax situation) and it should be updated with all the tax changes for that filing year. Plus it beats those clunky tax … […]