Rejoice! The 2018 tax filing season is finally over – and with it all the changes from under the Tax Cuts and Jobs Act of 2017. For some taxpayers, it was their first view of how the new tax law impacted them. And it wasn’t always pretty.
Well, how did it go for you? Stressful? Expensive?
If you live in a state with high income taxes or real estate taxes, your usual tax refund may not have come your way this year. On the other hand, the new tax law may have lowered your tax bill. But no matter where you live, seeing the new tax rules in action for 2018 gave you a better idea of what to expect for 2019.
Not knowing what to expect is stressful! Follow these tips to reduce stress next tax season:
Get Organized and Stay Up-to-Date
Use your 2018 tax return to identify the information you’ll need to accumulate during 2019 to prepare for next year. If a life event in 2019, such as buying a home, starting a business, or changing your marital status, you need to check out how it impacts your taxes. Keep up with your tax deductions and other paperwork you’ll need, and the task will be easier to do next year. Plus, if you need pay stubs and account statements to apply for a loan, it’s all ready for you.
Do a “Paycheck Checkup”
Did you owe a lot for 2018, or did you get a refund of the interest-free loan you gave Uncle Sam? An IRS Paycheck Checkup can help to make sure you don’t get an expensive surprise when you file your 2019 income taxes next year. Here’s their online tool to see if you need to change your withholdings https://www.irs.gov/paycheck-checkup Taxpayers with investment, self-employment or other non-wage income need to make quarterly estimated tax payments. Here’s a link to more details https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes.
Right after you file last year’s taxes is the perfect time to see how to make next tax filing season less stressful. Whether you prepare your own taxes or use a tax professional, following these tips can reduce your stress and reduce the time that you spend filing your 2019 income tax returns.