I remember back in the day when my Mom and Grandma reserving a weekend to do their tax return preparation. Even as a child, I could see that this was not something they enjoyed. We drove to Grandma’s house to do the deed and my Mom gathered up her shoe box of relevant data. Grandma had her shoe box too. Hey cleared off the coffee table in Grandma’s living room and sat down to make their calculations.
I couldn’t understand why they both seemed so serious, intent on the task and going over and over the paperwork. No laughter, just intense concentration and lots of paper everywhere. By the second afternoon, accompanied by many pots of coffee, and perhaps a couple of aspirins along the way, they were satisfied that all was complete and accurate. Only then did the laughter return and their usual cheerful demeanors were again in evidence. The tax return preparation was successfully completed.
It only took me about a half hour, when it came time for me to file my first tax return. Whew! I had no write-offs or additional schedules or any other such complications with my tax return preparation. Listed my income, what I’d paid in and it was a simple step away to my tax refund. Hey, that wasn’t so bad! That was many years ago.
I had no need for tax help, no tax questions. It was pretty straightforward. Little did I know what the future would bring? Over the years, the yearly tax return preparation seemed to become more complicated, for reasons unknown. Perhaps that tax booklet of instructions seemed to gain weight, getting larger and more incomprehensible each year.
Today, I wouldn’t dream of doing it myself because the process of tax return preparation has become so unwieldy. In fact, the last time I tried that, it took me three days to wade through the booklet, checking everything over and over, ended up with a migraine and then had my tax return rejected for inaccuracies! Now, I am forced to rely on tax professionals, who attend any number of workshops and seminars in order to be up to date on everything the government has added to the tax laws in the past year.
I figure that the IRS must spend a considerable amount of time brainstorming over how to cloud the issues. Ah, a new worksheet to nowhere! Circular thinking is the norm.
Here are some tax return preparation tips that will save you time, money and headaches.
1. Go with a professional tax preparer. Tax software is another option, but be sure to read the fine print as to the accuracy they’re willing to guarantee. If you’re over 50, AARP will prepare your taxes at no cost.
2. Before you make an appointment to prepare your taxes, make a list of any tax questions that may pertain to your return. Call the IRS 800 number help line and nail down all of the particulars, so that you have all the documentation ready to get the job done on the first round.
3. Gather all of the schedules and tax forms which might apply. You can download all of the tax publications, schedules and forms you might need online. Go over them and highlight items that might be applicable to your tax return preparation. Bring these with you to your appointment, or be prepared to answer the tax software queries.
4. File as early as possible. If you have a refund coming, get to the front of the line!
5. Think twice before you go for a tax refund anticipation loan. You’ll pay a lot to get your refund just 3-4 days sooner.
Today, tax return preparation cannot be conducted out of a shoe box. Do yourself a huge favor and leave this odious task to the pros!
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