Don’t Procrastinate During Tax Time
Tax Day is April 18th, not the 15th, due to Washington D.C.’s Emancipation Day holiday, so you have a few more days to file your taxes or file for an extension this year than you might have expected. But the 18th will be here before you know it, so don’t procrastinate during tax time this year!
First, get organized and gather your important documents. These could include W-2 and 1099 forms, medical bills, property tax and mortgage interest documents, and receipts for charitable donations. If you file your taxes electronically, it could mean getting a refund sooner – electronic refunds usually come a week before ones for paper returns. Plus, fewer mistakes happen when returns are filed electronically. Also, be aware that it can be hard to get someone to answer your questions on the phone – the National Taxpayer Advocate watchdog group said that in 2021, just 3% of calls were answered by the IRS’ 1040 support line.
Divide time into 15-minute blocks
There are endless distractions, and it’s easy not to realize how much time we spend on them. You sit down to watch one episode of your new favorite series, and suddenly you’re on the third. One way to beat procrastination is to divide time into 15-minute blocks. By setting aside blocks for specific tasks or leisure activities, you can more easily track how much time you spend on each thing and limit time-wasting activities.
When you do complete your task, reward yourself! This will increase your motivation when doing the next thing, plus give you a break. It can be a good idea to plan something fun after Tax Day or after other big projects, so you have something to look forward to.
One task you can add to your to-do list is to create a retirement plan. This upcoming 30+ year period of your life requires preparation. You’ve worked hard during your career, and you should be able to retire without worrying about generating retirement income, paying for healthcare costs later in life, or minimizing your tax burden in retirement. At Barnett Financial and Tax, we can help you accomplish this task, and the first step is to Click HERE to sign up for a complimentary review with us.