6 Tips to Prepare for the Tax Deadline

Ohhh man! Tax deadline for C-Corps and Personal taxes are due next week!

I've heard a lot about the stress that inevitably comes from tax time. And that's completely normal! The more you do in a year.. well, the more you have! It's one of those double edged swords.

What can you do to prepare for the tax deadline?


If you’re a business owner, download my signature 2022 End of Year Tax Prep checklist to prepare your books for taxes and then read tips below!

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Gather all Necessary Documents

If you have received a tax document from a third party - get it together because more than likely you'll need to provide it to your tax preparer.

As a rule of thumb - it is always a good idea to give them more information than less. They are crazy busy this time of year so it's more of a common courtesy to respect their time by giving them what they need. It's also genuinely in your best interest because you're not also wasting your time by continuing to stop and find these documents as they are requested.

Some of the most common documents to get together:

• W2's

• K1's

• 1099's

• 1098's

• 1095's

• and anything else that a third party provided to you as tax document that they submitted to the IRS

Organize your Paperwork

Think of it like laundry - you get your clothes all clean and you have two options

1. Dump it in the "clean" pile in a corner or on a chair.
   
   No judgment on this one, been there, rocked that! But it's more difficult to find what you need, right? You end up making another big mess by shuffling through the pile to find what you're looking for and a managable messy pile can quickly become a crazy mess
   
   

2. Put the clothes away, in the spot they belong. When you need something, you know exactly where to go and you get your clothes with ease and flow

We're here to make your business and life more easy and flowy, my friend!

If you digitally provide your documents to your preparer, name the documents accordingly.

This is what I personally use:

Last Name, First Name_Entity_Tax Form Type_Year

I put the first and last name for ease of the preparer.

I put the entity if there are multiple of the same tax form (like W2 or 1099-INT), this way I know exactly which document it is at a glance.

Tax form type to again, know exactly at a glance what it is.

And the year that form covers.

It takes two seconds and it's well worth the time investment.

Review your Previous Tax Return

I think this is important because it gives you an outline of what you have used in the past to make sure you get it all together. It also gives you a nice refresher on what deductions and credits you've been eligible for and this will help you maximize your tax savings and avoid making mistakes.

And that's the goal, right?!

Don't Wait Until the Last Minute

EEEP.. I can already feel the glares through the screen - no judgement on this! I promise!

I hadn't even finished my taxes until the beginning of April and for me that's way last minute, so I get it, life gets in the way sometimes.

However, the less you can rely on the idea of 'there's more time' and just handle the task in front of you, the less stress and the flowy -er your life will be.

You'd be surprise how much mental noise goes on when you're constantly thinking about and worried about a task on your to-do list instead of empowering yourself by taking action.

Check for Changes in Tax Laws

Holy moly do tax laws like to change and they can change from year to year.

From tax rates to deductions and credits, it's a web of bureaucracy that's important to stay up to date with, even though I completely understand the frustration.

If it's not your jam or you'd rather eat dirt, ask your licensed tax professional about any changes that might impact you!

Either way, staying informed is really for your own benefit. It helps avoid mistakes and makes sure that you're snagging all the available tax benefits that apply to you.

Which is a winner folks!

Consult a Professional

I will forever advocate for talking to a professional. You don't know what you don't know until you know it.. annnd you can't know it until you ask someone who knows.

WOW that was a mouthful. 😅

Or maybe think of it like opening yourself up to another perspective; a perspective that lives and breathes this path every day. I personally find a lot of value in that.

Look, I know next to nothing about working out. I'm fairly certain I'm allergic to that thing people call 'gyms' so I wouldn't try to tackle a home gym myself one day.. no! I'm going to pay a company who already has all the equipment, have them tell me the things, figure out which equipment best suits my needs and start there.

It's not the best analogy but I understand how much aversion people hold with taxes, and gyms are the thing I hold the most aversion to that I can think of! haha.

In Conclusion

I want you to know that it's normal to feel stressed during tax time. It can get confusing and convoluted quickly so this is why it's important to empower yourself with knowledge and options so that you can make an informed decision that works best for you!

Comment below if you have any questions or shoot me an email! I'd love to hear from you!

audrey@thegracefulpenny.com