In what ways can you make filing your taxes easier?
- Keep track of all your tax documents
- Make use of tax filing software
- Manage your time wisely
- Separate your personal and professional expenditures
Only a handful of people are able to say that they genuinely enjoy filing their taxes. Others either dread that they have to do it or pay people to do it for them. But regardless of how you feel, filing taxes will always be an integral responsibility in life, for as long as you are legally employed.
Over the years, many tools have been invented to make filing taxes as easy as possible. In the Philippines, tax calculators and how-to guides have been a huge help for people who require assistance with filing their taxes.
To help you and anybody else who finds filing taxes stressful and dreary, here are some tips and advisory points to keep in mind in order to make your tax filing as easy as a walk in the park!
Keep Track of All Your Tax Documents
There will always be a lingering sense of uncertainty when you are filing your taxes. This is why you must take note of everything you do wherein money is involved. There are many transactions that may unknowingly have a significant impact on your taxes. So whether you spend your money or donate it, always take note of all your monetary activities.
From your expected taxable figures to all the unexpected expenses, it would be best for you to list them all down. It may be quite tedious for you to maintain this list at first, but when you finally start doing your taxes, you will see how beneficial it is to keep a log of all your expenditures.
Aside from keeping track of tax documents, you should always remember to have a backup of your files. Make sure that you have backup copies of receipts, hospital bills, utility bills, and other significant financial records. With having backup copies filed and set aside, you won’t have to go through all the stresses that come with misplacing a document.
You should also take note of the fact that some tax deductions are only available if you have itemized your taxes.
Make Use of a Tax Filing Software
If pen and paper isn’t exactly your cup of tea, then you can try out a tax filing software instead. As compared to all the paperwork that you will be handling when you are filing your taxes, using a software that organizes them all for you would make the process immensely easier.
The best part about using these software tools is that most of them automatically organize the information that you put in. This is a great advantage because it lays out all your information the way they need to be.
Lastly, tax filing software tools are also very versatile. Many of them are available on the internet; they even vary in function and complexity. From simple tax calculators in the Philippines to full-blown bookkeeping services that can virtually do all of the work for you, filing your taxes online can definitely make your life easier.
Manage Your Time Wisely
For those who will be filing their Income Tax Returns, here are the dates that you should remember:
- 1st Quarter – On or before May 15
- 2nd Quarter – On or before August 15
- 3rd Quarter – On or before November 15
- Annual – On or before April 15
It is important to always keep these dates in mind when filing taxes. For those who plan to do their taxes by themselves, make it a habit to handle them before these given dates.
You should never procrastinate when you are filing taxes. See to it that you find and dedicate time to completely focus on this task. Doing taxes is already complicated as it is, so avoid adding to the stress of doing them by waiting until the last minute.
Separate Your Personal and Professional Expenditures
Whether you are self-employed or running a business, make it a habit to categorize your expenses. Take note of the things that can be considered for tax exemptions or deductions. It is also a good idea to do this to prevent any kind of confusion when it comes to declaring items.
The best thing that you could do to keep these two completely separate is to have a ledger and a bank account for both. That way, there is a clear distinction between your personal funds and your business’ money.
Filing your taxes is definitely one of the stress-inducing responsibilities that come with a professional working life – it can get complicated very quickly. When you are doing your taxes, don’t fall into traps that make it more difficult than it has to be. There are simple habits that you can instill to make it an easier, smoother, educational, and perhaps even enjoyable process!