Take the Dread Out of the Tax Return Process

Do You Dread the Tax Return Process?

While few people look forward to filing their tax returns, many people truly dread it.

If you are in the group that dreads it, figuring out why you dread the process can actually unlock potential tax saving opportunities.

I come across two major reasons people dread the tax return process:

Reason #1: Gathering the Information

Many people dread the process of gathering all their tax information because it can be a tedious process that can take hours. The reality is that when information is gathered only once a year, it is a dreadful process and what makes it even worse is there's a good chance something will be missed.

Take the Dread Out of Gathering Your Information Gather your information throughout the year. Create a system that works for you and helps you stay organized all year round. I see the most success in this area when the system is integrated into a person's daily routine.

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The following reports are located in the Tax Strategy section of Tax Mastery

Get Organized

Set up your new system of gathering information today. It doesn't have to be elaborate. Start with simple changes and build on them. The key is starting today!

The better organized you are, the less likely you are to miss deductions and this leads to paying less in tax - legally!

Reason #2: Not Knowing How Much Is Due

Another reason many people dread the tax return process is because they don't know where they stand. They don't know if they are going to owe or if they are going to get a refund.

The truth is, the best time to know your tax liability is throughout the year, because that is the time when you can do something to reduce your taxes. The opportunities to reduce your taxes are severely limited after the end of the year.

Take the Dread out of Finding out How Much You Owe

Knowing in June that you are going to owe $20,000 of tax the following April can actually be a great tax planning tool. Having this information can be extremely powerful!

First, you still have the rest of the year to work at reducing that amount. Second, there may be business decisions you make that can influence this amount. Or, there may be investment decisions you make that can influence this amount. Finally, there are probably tax strategies you can implement to legally reduce this amount.

It's not too early to start your tax planning for 2010. Set up a planning session with your CPA to find out what your 2010 taxes look like and what you can do in 2010 to reduce your taxes.

Plus, if you haven't started the process to get your 2009 tax return filed, it's time to get that done!

Taxes and Building Wealth Go Together Taking the dread out of taxes is so important because it opens the door to tax saving opportunities. These tax savings can be leveraged into your wealth building strategy!

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