Sorting Your Finances Early! The Best way to Avoid Tax Headaches.

Once the excitement from Christmas and New Year’s fades away and the snow starts to melt, many Canadians start to anticipate April with a little bit of trepidation. Tax season can be a stressful time. Gathering up your expenses, claiming all of your deductions, filling out your tax firm and much more – there is a lot to think about during this time of the year.

So how can you make this tax season less stressful? Here are some tips to keep in mind that will ensure that April approaching will not cause you to crave headache pills and a stiff drink.

Start Early

If you don’t want to pull an all-nighter figuring out your finances on the eve of tax day, you will want to start as early as possible. Whenever you have a free evening, start organising all of your receipts into piles by month. Tally up the expenses that you will be able to write off, including costs of education, work uniforms, sports programs benefits for kids and others.

It can be helpful to make yourself a plan and break down the process of completing your tax return into simple steps. If you work on one step per week, you will have completed everything well in advance of the deadline without any stress.

Buy Some Helpful Tax Software

Having the right tax software can make filing your tax return so much less stressful. With a program such as TurboTax or H&R Block, you will be able to quickly input your information and fill out your tax return that way. These programs do cost money, but it is possible to save money during tax time with coupons online.

Ask Questions

Not sure if you are eligible to claim a certain benefit? Wondering whether you and your spouse would find income splitting advantageous? If you have questions about your tax return, make sure that you ask an accountant or search online for the answer – rather than just wondering or making a wild guess. Finding the right information will help to ensure that you are making the best choices so that you will save your family money – and it also means that you won’t be worrying whether you got it right.

Keep Better Records

If your idea of keeping records is shoving all of your receipts into the junk drawer of your desk, you might want to take the time this year to develop a better filing system. Perhaps you can scan all of your receipts to the cloud and manage them that way, or develop a system of files so that you can keep all documents in an orderly way. Whichever way you do it, it won’t take much time to set up now and it will save you a lot of time and stress when next year rolls around.

Keep Your Past Returns

It is recommended that you keep a copy of your past tax returns, for up to seven years. Not only is this important if you are being audited, but it will also come in handy for filling in your future returns if you need to amend your taxes. It will make filling out your return a lot easier if your situation has not changed dramatically and you can simply fill in a lot of the same numbers from last year.

Take a Break and Relax

Staring at your tax return in frustration for several hours can make anyone fed up, so don’t forget to take a deep breath and relax. Walk away from the task, get some fresh air and do something else for a while. Once your mind is focused and calm again, you can return to the task. When you look at the numbers with fresh eyes, it will be much easier to see why those sums just didn’t add up the first time.

These are just a few of the ways that you can simplify tax season and make filing your tax return much less stressful in the future. Filing your taxes shouldn’t have to be stressful, so follow these tips and this year it will be a breeze!

Russell Matthews knows that it is best to get your returns done as soon as possible so it is out of the way. If you would like to see more advice you can find him writing for SumoCoupon

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