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6 Easy Tips for Coping with Taxes
- Get organized – this is not too difficult, but it takes time. Make a file for documents as they start arriving.
- Seek help from a tax profession if needed. A tax professional brings expertise, knowledge of the tax code, ability to find deductions, and can develop strategies for lowing your future tax bill. This is a personal decision of course.
- Make your 2017 IRA Contribution. The deadline for this is April 17th, 2018. For 2017, the maximum amount is $5,000, unless you are 50 or older. Then you can make a catch-up contribution of an extra $1,000.
- If a refund is coming, file electronically. The IRS processes electronic returns faster than paper ones. You may get your refund more quickly. So learn more, visit: http://www.irs.gov/filing/e-file-options .
- Reinvest your tax refund. Your financial advisor can help you identify the best way to do this, be it a college fund, or retirement fund. If you develop this strategy now, you will be less likely to spend your refund.
- Make a commitment this year to stay organized. When it comes to receipts, write them down, keep a ledger or file. Get a portable file box so you can file items as needed.