By Gordon Chavez, Financial Advisor
Let’s be honest—taxes can be stressful. But they don’t have to be. The anxiety often comes from the unknown: Will you owe money, or will you get a refund? The uncertainty can make it tempting to procrastinate, but delaying only adds to the stress. Instead, a little preparation can make tax season much smoother.
One way to ease anxiety is by tracking your taxes throughout the year. As Money Coach Christopher Parks puts it, “There is no such thing as ‘tax season’ unless you are a tax preparer. Taxes are a year-long process where you may have to make adjustments a few times a year to maximize your personal financial situation.” Online tax calculators, like the IRS Withholding Estimator (https://apps.irs.gov/app/tax-withholding-estimator ), can help you stay on track by comparing your expected taxes to your current withholdings.
When it comes to filing, choosing the right method is key. You have three main options:
- The Do It Yourself Free Option: You may qualify for free filing through the state of California (https://www.ftb.ca.gov/file/ways-to-file/online/calfile/index.asp or the IRS https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free.)
- Use a Tax Software: Services like TurboTax and H&R Block offer guided assistance, but be sure to check reviews before committing. This is not an endorsement for either of these companies.
- Hire a professional: If your taxes are complex, a tax professional can ensure accuracy and peace of mind.
Many people feel overwhelmed by these choices. Small business owner Samuel Davis III shares, “It’s more of an emotional thing for me when tax time rolls around with anxiety and stress leading the charge. Who am I going to use? Should I finally do it myself? Why not just stick with this company or that one from last year? Do I feel comfortable with my tax preparer?”
To avoid last-minute panic, create a simple tax prep schedule:
January: Decide how you’ll file.
February: Gather necessary documents.
March: File your taxes.
The key is to start early. By breaking it down into steps, you’ll stay in control and avoid the stress of rushing. You got this!
