Tax season can feel overwhelming, especially when you’re juggling family, personal and professional commitments. In a recent survey by Wallet Hub, almost one third of respondents polled said they would rather serve on jury duty than do their own taxes. (1) The right strategies can help make preparing your taxes transform from a source of stress into a more manageable task. Here are some practical tips to streamline tax preparation and maintain your peace of mind.
Set Aside Specific Times for Tax Preparation
Schedule dedicated time in your calendar specifically for tax preparation. Treat this like any important appointment — because it truly is! By blocking off periods (consider breaking it into manageable 30-minute segments), you not only ensure you are focusing on your taxes, but you also prevent last-minute scrambles and late-night panic sessions.
Begin by reviewing what needs to be done. This may include:
- gathering documents
- researching deductions
- filling out forms.
What would you prefer, jury duty or doing your own taxes?
By allocating time each week leading up to the tax deadline, you’ll reduce the feeling of being overwhelmed as the due date approaches. Reminding yourself that tax season does not last forever can also help. (2)
Utilize Checklists
Creating and utilizing a checklist can be particularly beneficial in organizing your tax preparation process. This list should outline all the documents and forms you need including:
- W-2s
- 1099s
- previous year’s tax returns
- receipts for deductible expenses
Consider breaking the checklist down into categories such as income documents, deduction-related receipts, and health care forms. This structured approach not only makes the daunting task of tax preparation feel more manageable but also ensures you don’t forget any critical items that could affect your tax return. Digital checklists or tax software can also help by keeping everything in one (digital) place.
Plants and flowers can add some vitality to your workspace.
Create a Designated Workspace
Set up a designated area in your home where you can gather all your materials, such as a specific table or desk that is free from distractions. This workspace should be comfortable and equipped with all the necessary tools:
- your files
- calculator
- notebooks
- computer
Ensure that this area is tidy and focused solely on your tax work. A clutter-free workspace can promote a clear mindset, helping you tackle each aspect of your taxes without unnecessary distractions. Organizing expert, Marie Kondo, advises to also add a little joy to your workspace, by adding a favorite photo, plant or trinket – just be sure to keep things streamlined. (3)
Use Technology
Utilizing technology can significantly expedite the tax preparation process. Consider using accounting software or apps tailored for tax filing that can guide you through the process and even automatically import documents. Many of these tools can also help keep track of your expenses throughout the year, eliminating the last-minute scramble for receipts. Online filing solutions often offer additional features such as error checks and maximum deduction estimations. Whatever your comfort level with technology, leveraging these resources can make tax season more efficient and less stressful.
Make Time for Mindfulness
It can be sort of a Catch 22: using a mindfulness technique could totally help your stress level, but you’re way too busy to even try! Dedicating even a few minutes each day practices such as deep breathing, meditation, or even simple stretching exercises, can provide noticeable relief, helping to clear your mind and allow you to approach tax preparation with a (somewhat) calmer demeanor.
Another way is to think about reframing stress and/or anxiety into… excitement? Professor Alison Wood Brooks recommends approaching difficult tasks by shifting the energy of stress into a more positive force. In a study for Harvard Business School, (4) Professor Brooks looked at how people performed better in difficult situations when they were able to change their feelings about a given task.
Get Help if You Need It
Seek support if you’re feeling overwhelmed. Connecting with a certified financial planner or tax professional can provide invaluable assistance, especially if your tax situation is complex. They’re equipped to guide you through the nuances of the tax code and help you maximize your deductions while saving you time and stress.
Tax season is not looked upon as a fun time of year, for many people. By taking control of what you can, such as scheduling time, organizing materials, breathing mindfully for a moment, and seeking professional support, when necessary, you can make tax time more manageable.
Authored by Maureen Demers, CFP EA
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