How to Prepare Your Tax Return Stress Free

April 12, 2014

Have you completed your tax return yet? The tax deadline is just a few days away so if you haven’t filed, it’s time to gather your documents and prep your return. If filing your income taxes stresses you out, you can keep your stress level in check with a few simple tricks. Use these six strategies to file your tax return accurately and effectively.

1. Prep Your Documents
Get your documents in order before you begin to file. Gather up your W-2s, 1099s, investment statements, receipts for charitable contributions, Form 1098 if you paid interest on a mortgage, and documentation of itemized deductions. To simplify the process for next year, start a filing system to store your documents as they come in.

2. File Online for Free
If you’re filing a simple return, there’s no need to pay for tax prep software, especially if you have a good understanding of your finances. The IRS provides a list of websites that complete tax returns for free if your adjusted gross income is less than $58,000. If it’s more than that, you can still file for free by using the electronic forms offered on the IRS website. Plus, filing online is generally quicker and less stressful.

3. Know Your Filing Status
Did you get divorced or married last year? If you’re unsure which status to claim, choose the one based on your relationship status on December 31,2013. It’s that simple.

4. Research Deductions and Credits
It might take some time, but to ensure you claim all appropriate deductions and credits, research the IRS website to determine which ones you qualify for. If you claim a deduction or credit you don’t qualify for, you could end up getting audited – something no one wants. If you have a hard time deciphering any information, give the IRS a call. The number is 1-800-829-1040. Try to call as early in the morning as possible to avoid lengthy wait times. Hours of operation begin at 7:00 AM local time, Monday through Friday.

5. Take a Breather
Don’t stress yourself out by trying to start, complete, and submit your return in one sitting. Instead, get the bulk of it done one day, then take a day or so before going back to review it for possible errors.

6. Sign Your Return
Signing your return sounds simple, right? Unfortunately it’s sometimes the simple things that trip you up. If you file your return manually, don’t forget to sign it. Failing to sign your return prolongs the refund process, which can be stressful if you’re relying on the funds.

Don’t wait until the last night to file your tax return- a surefire way to increase your anxiety. Go ahead and set aside an afternoon or two to complete the job. It’s important to get your taxes right, but there’s no need to set yourself up for a stressful situation.