How do you feel about taxes? If you’re like some, they can seem intimidating! I know I felt that way years ago when I was first starting out as a freelancer, but it turns out with all of the tools, tips, and products available right now, taxes aren’t as intimating as you think.
So before you shy away from the thought of filing your taxes, here are some spooktacular reasons why taxes aren’t scary.
- You can file your taxes online: This is fantastic for us because we can work on our taxes on our own schedule. With two little ones at home, we found it’s less stressful entering our data bit by bit in the evenings. Plus TurboTax ask you simple questions and figures everything out on the back-end based on your entries and also uses technology that allows for less data entry.
- Free tax tools: Who doesn’t like free?! Now you can get a leg up with your taxes and finances with awesome free tools and products. Apps and online tools like TurboTax TaxCaster, TurboTax W-4 Withholding Calculator, and Education Credit & Deduction Finder empower you to be wiser with your money. Plus you also may be able to file your taxes for free with TurboTax.
- Keeping track of your money is easy: You don’t have to formally write out a budget or count every single dollar. Set up a budget on an app like Mint to help track your spending in real time.
- Deductions and credits can be your best friends: We tend to focus on how much we owe, but you may be surprised at the tax deductions and credit out there you may already qualify for. These help you lower your taxable income and tax bill!
- Give your future self a big boost and a win for your taxes now with your retirement contributions: Investing as much as you can in tax advantage accounts like your company’s 401(k) and/or IRA can be a double win. Your contributions go in pre-tax and your taxable income is lowered. Plus you may also be eligible for the Savers Credit, which may give you a credit of $1,000 single and $2,000 married filing jointly just for contributing to your retirement.
- Help is a phone call, click, or app away: You don’t have to do this alone. You can now quickly get the answers to your tax questions with TurboTax Live. You can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered while you’re working on your taxes. How easy is that?
- Business finances can be a cinch with the right tools: Are you worried about your business finances? Make things easy by using software to quickly track your business income and expenses. I use Quickbooks Self-Employed and love how I can sort my transactions and see how much I need to set aside for quarterly taxes. My business information also easily exports to my TurboTax Self-Employed tax return.
- Estimated tax payments: Speaking of quarterly taxes, staying on top of them allows you to stay current with your estimated tax payments if you are required to pay them. Make sure you mark your calendars for these important dates.
- You can track your refund. After you e-file your taxes and it’s accepted by the IRS, you can casually track the status of your refund. Countdown the days for your check!
- Knowledge is power. The more we know about something, the less scary it seems. Help yourself out and learn about taxes. The TurboTax blog can give you the tips you need to give you big wins with your finances and taxes.
I hope this list helps you relax a little when it comes to taxes, they’re not as scary as you think! As you can see, preparation, and keeping good records can help you tackle your taxes and be ready to file come tax time.