3 Easy Steps to Help You Get Ready to File Your Taxes
According to a study conducted by NerdWallet, 80% of millennials worry about filing their taxes. If you are like many of the people surveyed in this study, you’re probably worried about making a mistake, paying too much, or not getting a full refund. And what do we do when we’re afraid and have to make an important decision? We procrastinate! But that’s really not necessary. While everyone’s tax situation is different, there are steps everyone can take before you file to help ease your worries when the time comes.
1. Find a copy of last year’s return.
Whether you’re using an online service or filing in-person, having this information can speed things up.
2. Gather all of your income sources.
When you only have one job, this is easy, but if you have more than one job and/or a side hustle or two, be sure to collect all of your W-2s and 1099s. Don’t forget your investment income!
3. Know your expenses.
Comb through your bank statements for expenses for your contract work, your business, healthcare, tuition, and student loans.
A lot of the anxiety around taxes comes from not knowing where to find things, and not knowing where to look to find them, so preparation is key. The sooner you start, the sooner you can troubleshoot any section that’s challenging. You may have to pay for help from a professional, but at least you’ll have everything they’ll need if or when that time comes.