Even though April 15th is long past, there are still many people working on their 1040 EZ taxes. If you owe in your probably on a plan to take care of your debt. If you got money back, you’re working on how you can get more back next year! It’s a never ending cycle. I am forever saving receipts and trying to keep everything organized so that next year the process goes smoother and I am not in a frantic search at the last minute. The problem is, no matter WHAT I do, it happens. Every. Single. Year.
My husband suggested that we contact some IRS Tax Lawyers and see if they have a better format and system. Fried & Rosefelt are located in Washington DC, right near the IRS. They are going to be a great resource. There are many computer programs and even apps for your phone that allow you to scan receipts and organize things. It’s not so much the fear of the IRS or even taxes that bother me (of course we’ve never had to pay in), its more the worry that I will do something incomplete or worse mess up numbers and get audited years later. I am really happy that I have an accountant to help me with the process and if we aren’t sure, we just don’t include it. I am sure that is playing it safe, but better that then an audit.
For us, we don’t plan on our taxes every year. We never know what the tax refund will be from year to year, so we really just don’t plan too much on this extra money. It usually comes to us and we use it for a fun weekend with the kids, dinner, maybe a new toy for each of them and a gadget or something hubby and I want and then we put the rest in the bank and through the next 6 months it magically disappears. I’ve been saying for YEARS that I want to take the taxes and take a family vacation with the kids. With the price of airline tickets and all the other expenses of a vacation, we haven’t been able to do that yet. We are planning to do it soon though. My other problem was I didn’t want to take them when they were too young and wouldn’t remember. At the age of 8 and 11, I think they will remember everything well. Since my trip to Florida and Disney 2 years ago, the kids really want to get to Disney. We are currently working on that plan.
How do you work on your taxes? Are you organized through the year or a rush at the last minute person? Do you save your taxes for something special or do you use it to catch up on bills from the year?