Tax Time...Again?

I understand that having your taxes prepared is probably up there with a root canal and a colonoscopy. For some people it is a very daunting task of having to gather the anal documents that are required to prepare a complete and accurate return. Some people literally have anxiety attacks over their tax preparation. Many want to try to oversimplify the process. One standard line is "everything is the same as last year". Another is "mine is simple you just need to put the numbers on the form". Granted, some tax returns are more difficult than others but it is never the same as last year. Of course each year the Government seems to have some change in the reporting process that needs to be addressed......most recently some of those changes were due to the Affordable Care Act that affected many taxpayers. 

Whatever your situation may be, the process of tax preparation is unique to you. Trying to compare your tax circumstances to a friend, co-worker, friend or neighbor is usually a meaningless exercise. Nonetheless, people tend to make the comparison anyway and can’t understand why their situation is different than “their buddy”.

So if you have already completed your tax return, congratulations. If you have not, it is time to get organized and begin gathering the documents and reviewing your financial records. Some people have a master location where they file information throughout the year that pertains to their taxes. At tax time, they have one large file to organize and do not have to search the entire house frantically looking for their tax information. 

Getting organized for tax preparation does not need to be a painful chore. Maybe this is the year of getting organized. Good luck!

Until the Next Tom's Take...