Filing your taxes requires you to be in a certain mental state that helps you be calm, stress-free and organized. Procrastination can be the biggest detriment to tax preparation. Face it: No one likes paying taxes, but it’s something we all have to do. Might as well get it done and over with.
Follow these four tips to get yourself mentally prepared to file your tax return:
- Let Go Of Emotions: No matter what you’re feeling about how much you owe, you have to put it aside when preparing your tax return. Stress and anxiety can make it difficult to process your options rationally, and can make thinking and sorting even harder. Calm down, release any negativity, and relax before trying to prepare your tax return.
- Don’t Forecast Disaster: You can’t predict the future of your tax return. Overburdening yourself with “what if” and abstract questions with no definitive answer will make preparing your tax return much more difficult. You must take each issue you encounter step by step, and cross only the bridges you need to.
- Divide and Conquer: It’s okay to multi-task and divide your tax return into smaller sections that you complete one at a time. Not only will this give you a bigger sense of accomplishment as you finish each section, it will help you stay organized and keep you from feeling overwhelmed by an entire tax return.
- Start Early: Don’t wait until the last minute to begin your tax return, as doing so will cause unnecessary anxiety. By starting the process early, you’ll have time to take each section separately and slowly, which will eliminate stress. Don’t forget to gather all your documents before you start.
Most, if not all of your documents will be mailed by the end of January, which means you can start your return sooner. Typically, the documents you’ll need to prepare your tax return include:
- Form W-2, Wage and Tax Statement from your employer
- Form 1099s from banks, contracts, etc.
- Charitable donation receipts
- Mortgage interest statement/real estate tax bill
- Major medical expense receipts
- Tuition and student loan interest statements
- Brokerage statement detailing dividends on non-retirement accounts
