Tax Hacks for Your Busy Life
Navigating tax season can be daunting, especially with the demands of a busy lifestyle. As a credit union member, you have access to resources that can make filing your taxes less stressful and more rewarding. Here are several tax hacks to help you save time and reduce stress when it’s time to file your returns.
1. Organize Your Documents Early
One of the simplest ways to reduce tax-time stress is to get organized. Create a folder—digital or physical—to store all necessary documents, such as W-2s, 1099s, receipts for deductible expenses, and your previous year’s return. If you need some extra help, many budgeting tools help track expenses throughout the year, making this process even easier.
2. Take Advantage of Tax Software and Services
If you file with TurboTax, you can save 10% off their products as a Service Credit Union Member. Simply log in to Turbo Tax from Service CU online banking to get started.
3. Claim All Possible Deductions
From student loan interest to medical expenses and home office costs, there are numerous deductions available to taxpayers. Keep detailed records throughout the year to ensure you don’t overlook any opportunities.
4. Review Your Withholding
A busy life can lead to overlooking your tax withholding settings. If you consistently owe taxes or receive large refunds, consider speaking with a tax accountant concerning your tax withholdings.
5. Reread Before You Submit!
Before submitting your tax return, take the time to carefully review it for errors or potential omissions. Make sure all personal information, income details, and deductions are as accurate as possible.
6. Spend That Return Wisely
If you’re expecting a refund, make a plan for how to use it. Consider paying down debt, contributing to a savings account or share certificate, or setting aside funds for a future goal like a vacation or home improvement project.
7. What to Do if You Owe Money
Owing taxes can feel overwhelming, but there are ways to manage it. The IRS may offer payment plans to help you spread out the cost over time. Avoid ignoring the bill, as any possible penalties and interest will accumulate.
8. Plan Ahead for Next Year and Stay Informed
Tax preparation shouldn’t start in January – it’s a year-round effort. Begin tracking any possible deductible expenses, reviewing your withholdings, and saving documents as they become available. Tax laws change frequently, too. Keep an eye on updates that might impact your filing, especially if you have significant life changes such as marriage, a new job or a home purchase. By staying proactive, you’ll reduce stress and be better prepared when tax season rolls around again. Many credit unions offer tools and workshops to help members stay organized throughout the year.
We’re committed to helping our members achieve financial success. Whether it’s providing educational resources or tools to track your finances, we’re here to support you through tax season and beyond. Start planning today and make the most of your hard-earned money.
