Editor’s note: Please be aware that we’re not tax professionals and this is not tax advice.
Not many people look forward to filing their taxes—it can be overwhelming, confusing, or just a pain in the rear. But there is no point delaying the inevitable so here are some tips for getting through tax season without succumbing to stress:
Collect your documents
Before your tax documents start rolling in, create a designated place to keep them. You’ll need a physical folder for documents you receive in the mail as well as a computer file folder for electronic ones. Here are some of the common income-related forms you should look out for:
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W-2: A W-2 contains information about your employment and how much in taxes you had withheld for federal, state, and local taxes as applicable.
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1099-NEC: A 1099-NEC reports income from non-employment sources, generally as an independent contractor. If you worked for multiple businesses, you’ll receive a separate 1099-NEC from each one that paid you more than $600.
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1099-INT: This form reports interest income from an interest-bearing checking or savings account.
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1099-DIV: This form reports dividends from stocks and mutual funds in non-retirement investment accounts.
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1099-R: This form reports withdrawals or distributions from retirement plans, including rollovers
And here are some of the most common deduction-related forms you might receive:
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1098-E: This form reports student loan interest paid during that year.
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1098-T: This form reports college tuition expenses.
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1098 Mortgage Interest Statement: This form reports interest paid on a mortgage and other mortgage-related expenses for the year.
Make a checklist for future use
Once you’ve gathered all of your tax forms for the current year, make a reusable checklist to keep track of the documents you expect to receive. Edit the list annually to account for changes in your accounts and sources of income.
Find the right help
The tax code is notoriously complex. If your taxes keep you up at night or you’ve had a change in your life that could affect your tax situation, it might be worth getting help from the right tax professional for your situation.
Schedule an appointment
If you work with a tax professional to file your taxes, schedule your appointment as early in the season as you can. If you file your own taxes but need some accountability, make a date with a friend or family member to work on your taxes together. If you are flying solo, schedule an appointment on your calendar and make it more enjoyable by ordering your takeout or making your favorite drink.
Don’t freak out if you owe
Discovering that you owe taxes is an unwelcome surprise, but it’s rarely an emergency. The IRS does offer payment plans for up to 72 months, and in most situations, you can apply directly online. In addition to getting on a payment plan, set systems in place to avoid the same problem next year.
