In this episode Marcus Mire, CPA discusses key steps to take in avoiding last minute tax stress.
Show Notes and Key Take Aways
– The biggest causes of stress are the unknown of how much they may owe and being disorganized in regards to their financial data.
– Tax stress can be illiminated by breaking down accounting responsibilities into “problems that can be solved” and “tensions that are managed”
– “Doing your taxes” doesn’t have to be a year end event. There are ways to manage those tasks regularly throughout the year.
– Capture events as they happen and share with your CPA throughout the year.
– Capturing your transactions is really easy and can be done on your mobile device if you use a cloud accounting software like Xero.
– Meeting with your CPA to discuss life changes and specifics about your situation can provide tremendous advantages in tax planning.
– If your financials are up to date and you talk to your CPA regularly you can form estimates on your future tax liability and prepare for it.
– When you aren’t sure what you owe in taxes you aren’t sure what you can spend on other things.
– The IRS offers a “Safe Harbor” method to pay tax estimates without penalty.
– If you have any complexity in your situation avoid doing your taxes without professional help.
– Find a CPA that can help you estimate your taxes and put you on a path toward better ongoing accounting.