Make this the last year that you stress about tax season
Dreading tax season once again? You’re not alone. Every tax season is full of challenges — gathering all the pertinent documents, completing a myriad of paperwork, filing deadlines. And, with changes to the tax code, many the result of the COVID-19 pandemic, the tax stress this season is that much worse.
However, the good news is that the IRS has extended the federal filing due date for individuals filing their personal taxes from April 15th to May 17th; estimated tax payments were still due on April 15th. In addition, the IRS has automatically extended the time for making contributions to IRAs and HSAs to May 17th as well. The May 17th deadline also applies to sole proprietors and single-owner LLCs.
The deadline to file state tax forms depends upon the state of which you’re a resident. In California, the 2020 tax filing and payment deadlines have been extended to May 17th as well, but this grace period doesn’t include individual 2021 estimated tax payments.
Corporate tax forms for partnerships and S-corps had to be submitted on March 15 or on the 15th day of the third month after the end of your company’s tax year. A six-month extension may be requested. Companies had until April 15th to submit corporate tax returns for income received in 2020.
Whether you’re running a business and are getting anxious about all of the different filing and payment deadlines or are getting ready to tackle your individual taxes, there are some pretty simple things that you can do to help reduce tax season stress.
Four simple tips to help minimize the stress of filing your taxes include:
- Organize now
- Go electronic
- Be diligent
- Seek advice.
The easiest way to reduce the stress when tax season rolls around is by staying organized and keeping up-to-date records of payments, receipts, and expenses. Digital records are a lot easier to keep organized, and they offer an added bonus of speeding up the process of categorizing expenses if you’re itemizing deductions.
Don’t wait until the filing deadline is upon you to prepare and file your taxes. Allowing more time for the process can really reduce tax season stress. And, for tax questions that aren’t easy to answer via a Google search, you should enlist the services of a tax expert, such as a CPA. Not only are they experts at preparing taxes, but they also have to stay current and up-to-date on all the latest changes in tax policies.
The past two tax seasons have been especially challenging for individuals and businesses alike due to the COVID-19 pandemic. This is especially true for the 2021 tax season as a result of the newly-enacted $1.9 trillion American Rescue Plan which added another new layer of complexity to a tax season that’s already complicated.
GYL CPAs and Advisors provides a full range of accounting, audit, business advisory, and tax services for businesses and individuals. The professionals at GYL can provide tax guidance as well as help you with organization, documentation, and tax preparation so you don’t lose any more sleep due to tax season stress.