“How do I do Taxes?”
This is probably the most common question I receive when working with teens in a classroom. I’m not sure if they hear their parents stressing about it or maybe they just got their first cheque and saw how little was left. Either way it has always fascinated me how upset people get about tax time. In honor of that I decided to write this short blog with 3 tips to help you stop stressing about taxes.
3 Ways to stop stressing about taxes.
Are you one of the people that is stressed and anxious about taxes coming up? These are three simple things that can help you out at tax time.
- Plan for it!
Tax time is not a surprise. It hasn’t been since 1917 when they first started collecting to cover costs of the war (Random fact for you). Every year the deadlines remain the same, so plan for it! Get a file folder, an accordion file or envelope to put everything you collect over the year into it. This makes it easier to have everything you need at the end of the year. If you are the person that ends up paying every year start saving for it early. Open a savings account and put a little bit of money into it every month, this way when the day arrives next year you aren’t freaking out over how you will pay the tax bill.
- Pay someone else to do it!
For many years I did my own taxes for my family. Then year after year our files began to get bigger and more complex and after spending hours one night trying to figure something out (I think it was something to do with capital gains…) I realized I’m wasting my time trying to do something I hate. So now I pay a professional and I have never regretted it. Now if you have one T4 and that’s it then by all means go buy some tax software and knock yourself out. However if you have multiple streams of income, investments, a business and deductions then save yourself the headache and pay a professional. “But it is so expensive” is the excuse most people use but trust me it isn’t compared to if you make mistakes and get audited! Even most of the bargain or discount places that will do your taxes will end up costing you just as much as seeing a true accountant. They have little clauses in their contracts that end up charging you for every piece of paper so be careful! Last year a friend of mine took their stuff to a discount service and paid $275, my CPA bill was only $300 and I can guarantee I had more paperwork than they did!
- JUST DO IT!
Pick a date. Pick a time. Just go and get it done! Sometimes the anticipation of the event is much larger than the event itself. It is not unusual for me to meet a client that has not done their taxes for their personal or business in years. Why? Mostly because of fear. Fear of how much they will have to pay, fear of not having everything, fear of the government coming after them. If you are afraid of doing your taxes, ask yourself WHY? Why are you afraid? If you are afraid of having to pay, think what if you get a refund? If you do have to pay, is it going to kill you? Big Whoop. Next year because of step 1 you’ll already have the money saved for them anyways!
If you struggle at tax time, or any time of the year, with your personal finances and budget, I can help! Let’s identify and overcome those hidden emotions and patterns that are holding you back financially. You deserve better! contact me today to schedule your free consultation.