The Lazy Girl’s Guide to Tax Season

There are two types: those who complete their tax returns within the new year and those who wait until April to do so (basically, the latter). EndDuring tax season), wondering what happened to their W-2. This article is for you if you are in that second group.

Tax season is often feared, not only because it can be costly but also because the paperwork involved is time-consuming and confusing. Filing your tax return can be a tedious task. There are so many forms and so many questions that you may not even understand your financial situation.

Tax time is something that we all have to deal with. However, with some guidance, it can be managed for even the most overwhelmed. Whether you’re looking to hire an accountant, complete your tax return yourself, or just get some information on how to be more prepared for the future, keep reading for tips and tricks to get you through tax season. You’ve got this!

Yes, Tax Season is upon Us

Sorry to be the one breaking the news. The deadline for American taxpayers to file their 2021 tax returns and pay any tax owed is Monday April 18, 2022. If you require an extension, this is the deadline by which you must file your 2021 tax return and pay any tax owed. Late filing can result in severe penalties, so it is important to get organized as soon as possible!

Having said that, don’t let the looming deadline intimidate you. Filing your tax return is a task that often gets blown way out of proportion—while sometimes annoying and inconvenient, it is very doable!

Are You in Need of an Accountant?

Your personal circumstances will determine whether or not you need an accounting firm to file your taxes. Although it can be expensive to hire an accountant, you could end up with a higher refund because tax professionals are often able get you higher deductions. An accountant may be the best option if you have a complicated tax return. You should also consider the time it takes you to prepare and submit your tax returns yourself. If you don’t have the time, just can’t be bothered, or are worried you could make mistakes that may end up proving costly, hiring a tax professional is worth looking into.

When looking for the right accountant for your needs, it is often a good idea ask people you know. They are likely to have similar tax situations to yours. Otherwise, H&R Block and Jackson Hewitt both have locations all over the U.S. and are able to handle a wide range of tax returns at relatively affordable prices.

It is also worth noting that you may come across professionals who advertise themselves as “bookkeepers” rather than accountants. So what’s the difference? A bookkeeper, on the other hand, is less likely to have the same training as an accountant. While hiring a certified accountant can be more expensive than hiring one, it is worth it if your business has complex tax issues or you are running your own business. A bookkeeper will be able complete most tasks for individuals who are submitting a standard return.

What about Do-It Yourself Options?

You can file your tax returns online for those who have simple tax returns. If you are single, have no dependents and work for an employer and your tax situation is otherwise simple, preparing your taxes and submitting them yourself is very easy. You can avoid hiring an accountant or a bookkeeper in this situation. There are many easy-to-use tax software programs that will help you. H&R Block and TurboTax both offer free do-it-yourself online tax software for simple returns, with more comprehensive options available for a charge if your return is more complex.

Making Sense Of All The Forms

If there is one thing everybody knows about tax season, it’s that there is a form for absolutely everything. The following list does not include all the forms you’ll need to fill out when filing taxes.

• Form 1040To file your taxes, you will need a 1040. This is where your tax filing status is announced, deductions are claimed, credits are claimed, and your income tax amount is determined.
• Formula W-2 At the end of each year, employers will send a Wage and Tax Statement (W-2) to an employee and the government, showing the employee’s wages and the amount of taxes that were withheld from their paycheck. If you worked for multiple employers during the year, where you earned a wage and salary, you will be issued a W-2 by each employer.
• Form 1099-NEC If you are a freelance or contract worker, this one’s for you. A business will use a 1099-NEC for reporting all non-employee compensation, so every side hustle where you don’t have a defined employment contract will give you one of these.
• Form 1099-MISCA 1099-MISC will be used for miscellaneous income, such as rent, royalties, prizes, or awards. 
• Form 1098-EYou will have to report the interest you paid on student loan loans on a 1098 E. This is important as you may be able to deduct the interest on your taxes.
• Form 1098T:Your college or career school reports qualified tuition and related education expenses using a 1098 T. These expenses could be eligible for education-related tax credits.

Tips and Hacks You Must Know

All of this may seem to be a sham. LotIt is easy to get lost in the maze of information and terms, especially when there is a deadline. Below, you’ll find a list of hacks and tips to help you on your tax-filing journey!

• You can collect your receipts and forms throughout the entire year and keep them in one location in a filing system that suits you. This will avoid you having to find them when it’s tax time and make you less likely to accidentally lose something important!
• Verify whether you have experienced any life events that could affect your tax status. If you were married in the year, you must file as such. However, it will depend on your personal situation whether you file separately or jointly. Your return will be affected if you have a dependent or had a child.
• Make sure you look into all deductions and credits, such as student loan interest, insurance premiums, charitable donations, homeowner expenses, and health insurance premiums.
• Always file on time! As stated above, Monday, April 18th 2022 is the deadline for filing your 2021 tax returns and paying any tax owed. Late submissions of taxes can result in a penalty. 
• Don’t throw away any documents for at least six years. There are exceptions to this rule, but you are unlikely to be audited again by the IRS after six year. This means that you need to keep all receipts and forms for that period of time because you don’t want to be caught in an audit without any of your documents.