Tax Season Is Here
I gathered everything together and began working on my tax returns today. Last year was such a nightmare with all the changes, and I hoped this year would be better. Unfortunately, it is not.
I guess the IRS felt that last year’s tax forms weren’t confusing enough, so they decided to add even more forms to fill out. What used to be one form now takes three forms to complete. What’s really ironic is that on the bottom of each form is a reference to the Paperwork Reduction Act Notice. Only the government can take a complicated process and make it more complicated.
I know I could take my taxes to someone to complete them, but I have the knowledge to do them, I always have done them, and I’m cheap. I don’t want to pay someone for something I can do just as well, if not better. Several years ago, my father decided to let someone else do his taxes, as he was tired with dealing with all the new laws. When he got them back, he looked over them and found an error that resulted in him paying more. That was the last time he had someone else do them.
This had me thinking about people in here who are succeeding in their business. Do they have someone take care of their taxes and finances, or do they take care of their own finances? I realize with the complicated laws that many people don’t want to deal with their taxes, but what about their finances in general?
When you’re receiving income from multiple sources, do you keep good track of where it is coming from? It’s wise to keep track of what is working so you know what to invest your time in. If you turn everything over to an accountant though, do you know what you’re turning over? Do you have enough knowledge to know if someone is sneaking (embezzling) money from you? People who do this are slick; they know what to do to hide what they’re doing. Many get caught, but many don’t.
A successful business person keeps an eye on their finances, and knows enough to ask questions if something doesn’t look right, and a successful business person trusts their gut instincts. Most probably don’t do their own taxes, but they know the main numbers that need to be on there.
Keep an eye on your business; know what makes you money and invest your time wisely. And when the money does come in, learn enough to protect yourself from fraud. It’s knowledge that is well worth the time to learn.
Now, back to those #@*! taxes. Does anyone in here do their own taxes? Is anyone here as frustrated as I am?
Recent Comments
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Congratulations on starting the process! Things can, hopefully, only get better. Love the Paperwork Reduction notices!
I'm in the UK so the system is a little different. I very recently did my own accounts for the first time, for 2018/19 so it is very fresh in my mind. I'm only just starting here but I have a little business that I'm self-employed in soI do need to pay taxes on income from various sources.
I did it at the very last minute, submitted about 30 minutes before the deadline. I always paid an accounting firm before that. Things had got a bit complicated. But I like being in control and doing things myself, especially as I still had to do the basic sorting out the information for them so I felt they had the money for doing not so much.
Apart from the stress of being so late, it really was not that hard. The tax I paid hasn't been queried..yet!
I am determined to do the next set in good time and have signed up with some software to keep track... If necessary I would prefer to find a local person, not a big anonymous company...Thank you for the advice on keeping an eye on business and time investment. All the very best during the process.
One thing you mentioned hit home for me - I like being in control of what goes on, especially when it comes to finances.
The normal tax deadline here in the US is April 15th. I have had a bad habit of waiting until late March to begin, always finding a reason to put it off, as I dread it so much. I actually like working with numbers; what I don't like is all the laws, and all the exceptions to the rules, and writing one number down on three different forms.
Thanks for the well wishes; with any luck I'll have the majority of this mess worked through this weekend, so I can concentrate once again on building my website.
I normally do procrastinate, but I really wanted to get them out of the way this year. I didn't realize that it would be more complicated that last year.
I've started them though, so I'm determined to get them done. Wish me luck! 🤪
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Yup, leave it the government to improve and streamline the process to make our lives easier and a little less cluttered. I'm cheap too, very cheap, but I have an excellent guy who's been keeping track of this for me for years. I keep every receipt for every little thing and have an enormous spreadsheet detailing every income source, expense, every donation, and just about anything else I can think of. Every year, I drop off this truck load of stuff with him, a week later he calls me in for the reckoning and paper signing. It's been said many times that there are two constants in life, well I've added another constant to the list, change. And leave it to the IRS to put change on the top of the list.
Greg
Maybe as I grow older I'll give someone else a shot at taking care of this mess. Right now though, I've done our taxes for so long, as well as other family members, that turning them over to someone else isn't an additional change I'm ready for right now.
It's good that you keep track of your finances; it sounds like you're definitely on top of things.