How to Avoid Tax Season Headaches

<img src=https://s3.us-east-2.amazonaws.com/dcr-apis/wp_contents/uploads/DCR-ADMIN/AdobeStock_487602600.webp alt=undefined style=height: ;width: /> Originally written by Russell Barnett, EA, CTC Many people dread doing their taxes because they suddenly discover they owe more money than they expected or feel rushed to file all the paperwork on time. To avoid situations like these, it’s important to make sure taxes are being withheld from your income at the appropriate level and keep track of your financial records throughout the year. By taking these steps, you won’t find yourself owing more money than you anticipated, and you can reduce the time you spend on your return come tax season. It’s important for taxpayers to monitor their withholdings throughout the year and be certain that neither too much nor too little is being withheld. If you receive a payment in the form of a bonus, commission or stock grant, be aware that these items are withheld federally at 25 percent. Depending on your tax rate, that may not be enough to cover the amount due. Thankfully, there are numerous online tools that taxpayers can use to monitor their withholdings and calculate how much money they may owe at the end of the year. For both small business owners and individuals, I recommend finding a record-keeping system that works for you and sticking with it. You’ll want to review your finances and gather any necessary documentation about once a month. Doing a little bit of regular financial organization throughout the year reduces the likelihood of making mistakes and eliminates the stress of getting everything together at the last minute. <a href=https://www.diamondcertified.org/ target=_self>Use Diamond Certified Resource to find top rated companies.</a> Related Articles <a href=https://www.diamondcertified.org/Guide/Tax-Services/ target=_self>The Essential Guide to Tax Services</a> <a href=https://www.diamondcertified.org/find-expert-advice/ target=_self>Get Expert Advice From Owners of Top</a> <a href=https://www.diamondcertified.org/find-expert-advice/ target=_self>Rated Local Companies</a> <a href=https://www.diamondcertified.org/membership/ target=_self>Become a Diamond Certified Preferred Member (Always Free)</a>