Are You Scrambing with Last-Minute Tax Prep?

Tax season is upon us. If yours is like most American families, it sneaks up on you, making taxes a bigger headache than you expect. Planning ahead helps, but many family members still find themselves orienting their paperwork and digging through documents clear up to the April deadline.

Here are some tips to prepare for submitting taxes at the last minute:

Pick a method

Resources are available to help you organize your financials and submit your taxes, so make sure to use them. There are so many options for tax preparation that it can be easy to get stuck here. Based on your needs, analyze which method is best, pick one, and stick with it.

Here are a few options:

• Hire a CPA. As this is the busy season, hiring an accountant is best done in advance. In an article for Investopedia, Jason Steele recommends hiring outside help either when you have very complicated financials or if you enjoy the personalized service. The main benefit of a CPA is that you are able to employ his or her services and ask your questions year-round, making planning and tax season that much easier.
• Qualify for the IRS tax prep service. The IRS provides a free tax preparation service for qualifying households. IRS-certified volunteers offer basic tax preparation services to those who have disabilities, are limited English speakers, or have a gross income of less than $54,000 per year.
• DIY. There are many online software services out there that can help you easily file your tax returns electronically. If you haven’t used one in the past, you’ll be pleasantly surprised. The software programs walk you through the digital forms, allowing you to input your information and providing easy access to information and help if you have questions along the way. If you have used a software service in the past and return to use it again, it will access your past information — such as addresses and employment details — to help the process go more quickly.

Gather up your documents

The paperwork you need to assemble depends on your specific financial picture. Your W-2 form will be necessary no matter what, but other forms may be required as well. If you have any stocks or mutual fund shares, you will need to report your 1099s; if you have any scholarship income, you’ll need to include a 1042; and so on. This checklist from Time can help identify which forms you need before you begin the filing process.

Watch the clock

Promptness is a virtue — especially with taxes. Make sure that you give yourself enough time to gather your financial documents and file.

If you’re not confident that you will make the deadline, you have options. According to this Investopedia article, you can request a six-month extension from the IRS by filing the IRS Form 4868 or by qualifying for special extension circumstances such as military enrollment.

Know your benefits

Don’t forget that Osen-Hunter provides legal and financial planning through WorkLifeMatters! We have discussed the benefits of joining the Osen-Hunter EAP before. If you would like to see your options, you can refer to this WorkLifeMatters brochure or go to ibhworklife.com and enter:

Username: Matters
Password: wlm70101

Taxes are taxing — but with the right tools at hand, you can get them done and get on with the rest of life. Good luck!