Plan Ahead to Avoid Tax Season Headaches
As we settle into the new year with the holiday season behind us, many of us are looking ahead to the next big season – tax season. Experts are predicting there will be unprecedented delays in processing returns and refunds in 2022 and recommend filing as early as possible. Filing season began January 24, more than two weeks earlier than last year, and ends three days later, on April 18, to allow IRS employees more time to process the annual influx of returns.
Origin Bank knows that tax season can be stressful, even under the best of circumstances. While 2022 presents unique challenges, there are steps you can take now to help make your future tax seasons easier to manage. Here are some tips:
- Keep Them Separated – If you have more than one job or earn extra money through a side hustle, it’s smart to have separate accounts so the income and expenses from one revenue stream don’t get mixed-up with another. Creating separate accounts may add a little more time for things like balancing checkbooks, but it can save quite a bit of confusion when it comes time to prepare your taxes.
- Go Digital – Keeping track of paper financial records can be a messy and complicated endeavor. Handwritten ledgers, printed receipts and photocopied invoices are difficult to organize and can easily get lost or damaged. Experts recommend switching to a digital filing system instead. There are plenty of online tools that make managing your financial documents easy, with searchable features to help you find what you need, when you need it.
- Make it a Monthly Goal – Experts agree that those who balance their checkbooks and review credit card and loan statements regularly have stronger financial health than those who don’t. Invest the time to perform these tasks each month, and include filing receipts and documenting charitable donations as a part of this process. Keep a digital folder with all your monthly documents so when it comes time to file your taxes, you can easily compile everything into an annual document.
- Engage with a Professional – Every year, tax codes become more complicated and the rules change for what you can and cannot deduct. Hiring a professional bookkeeper or certified public accountant might help take the worry out of making mistakes or missing out on deductions that could save you money.
At Origin Bank, we’re proud to offer the tools and services that help make managing your finances easy. Check out our Personal Banking resources to learn which services best fit your unique needs and goals, or contact one of our trusted advisors at (888) 292-4037.