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Working on your tax return can be stressful, but it doesn’t have to be. Read on for ways to set yourself up for a stress-free 2024 filing.
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Filing taxes is an activity you might come to dread more and more each year. And if so, you’re in good company. An early 2023 survey by SurePayroll found that nearly half of Americans report getting a headache just thinking about their taxes.
Now, the good news is that it’s still the summer of 2023, which means you’re many months away from having to file your next return. The bad news, though, is that come early 2024, you’ll have to start dealing with tax matters once again. So if you want that process to go more smoothly, here are a few moves you may want to make in the coming weeks.
1. Get your files organized
For many people, a lot of the stress of filing taxes stems from not knowing where to find key documents. You can spare yourself that anguish by getting your files organized ahead of time.
Start putting different physical and electronic folders together by category. For example, you may be able to claim medical expenses as a deduction on your taxes, so you’d want one folder for copay and prescription receipts.
Meanwhile, if you’re self-employed, you can deduct expenses incurred in the course of your work, like office supplies, licenses, and travel. So you’ll want to start making a folder of receipts for things like printer ink and train tickets.
2. Find an accountant
Not so shockingly, accountants tend to be very busy during the first four months of the year. If you know you’ll need help preparing your taxes in 2024, don’t wait until the new year to start looking for it. Instead, start looking now, when accountants are commonly less busy.
If you’re not sure where to start your search, talk to friends and neighbors who might be in a similar situation to you and ask for recommendations. If you recently became self-employed and your neighbor has run their own business for years, they could be a good person to get a recommendation from.
3. Start working to maximize deductions
Contributing money to an IRA, 401(k) plan, or HSA could shave a lot of money off of your 2023 tax bill. But you don’t want to wait too long to ramp up your contributions.
First, you should know that you only have until Dec. 31 to fund your 401(k) for 2023. IRAs and HSAs give you a little more time — until next year’s tax-filing deadline — but even so, you don’t want to end up in a crunch. If you’re eager to max out one of these accounts, or get as close as possible, start boosting your contributions now, while you have the money and have plenty of time to get it into your account.
Taxes may not exactly be on your radar at this time of the year. But a few key moves on your part could make early 2024 much easier from a tax-filing perspective. So as summer winds down, take a little time to tackle these key tasks. You’re apt to be thankful for it later on.
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