Haven’t posted in awhile, and the first topic I can think to write about is Tax Day? Disgusting, but oh-so-necessary; it’s relaxing to write about now that it’s all over. I hope that your filing experiences went smoothly as well.
So, most Americans know the adage that there are only two certainties in life – death and taxes. The public generally is aware that Tax Day usually falls on April 15th annually. However, due to Emancipation Day in the District of Columbia, this date was pushed to the 18th. The biggest mistake for me was hearing about this and thinking, “Great! More time to file!”
My life finances are not that complicated. I don’t own housing property. I don’t have any dependents. I don’t invest in any stocks or run a business, and I certainly do not have a farm. I don’t gamble or make personal profits throughout the year. Luckily, my health is in relatively good order, so there isn’t much to report when it comes to medical expenditures or insurance premiums. Overall, it’s a relatively simple process and my W-2 and any other deduction documentation are gathered neatly in a folder, waiting to be used well before Tax Day.
Against my pro-active nature though, I didn’t file in advance this year. No, I procrastinated and scrambled on Sunday evening, around 11:30 pm. My father became aware of this on Sunday morning, when I stopped by to indulge in breakfast with the family.
He watched in interest as I started to pull out the standard paperwork and signed in to my chosen e-filing provider website.
“Handling this a little late, eh?” he commented with a raised eyebrow and chuckle.
“Oh, well, a little, but it will get done,” I reassured him.
“And you understand everything that you’re doing?” he asked skeptically and with a little bit of awe in his voice.
I scrunched up my face uncertainly, but kept my voice firm, “Yes, generally. At least they’ve always accepted my returns without any problems and I seem to have the information filled out properly. I might be missing out on some small, qualifying deductions, but even those are negligible. Once my life gets more interesting, I promise to consult with the professionals, Dad.”
He nodded in approval and resumed watching his baseball game. Breakfast was called (oh, chocolate panettone French toast, how I love thee) and I did not submit the returns until that evening. And yes, he sent me a message before that, which simply asked, “Did you file yet?”
Simplicity aside, there is still a learning curve when it comes to filing. I’ve seen stronger people buckle under the pressure. A lot of terms and ins and outs that gear up peoples’ anxieties and have them reaching for their wallets as they scurry to entrusted accountants and other tax professionals. I hesitated several years ago, but at the last minute I canceled my appointment with H&R Block to take a stand against the tyranny; this was a me vs. convoluted, bureaucracy war!
Here’s what I came to question: How does the federal government expect the average citizen to understand this mumbojumbo? Taxes are needed to keep the country operational, but couldn’t there be a better standardized way? For instance, perhaps there could be free assistance and tax filing centers that compete with the private markets or subsidies offered to accountants that advertise discounted rates (not just an annual deduction for the cost of paying for help).
Some really basic tips that might help you:
- If you use a tax professional, ask them questions. Learn the process and understand the terminology. There is nothing worse than going along with whatever someone else is saying because we’re all human and prone to error; mistakes are possible – this is how different companies guarantee a larger refund than their competitors – they bank on human fallacy.
- If you don’t use a tax professional, read everything you can get your hands on. Browse the FAQ or glossary sections of relevant books. There’s nothing worse than being stubborn in an attempt to be self-sufficient and screwing everything up. Getting your return rejected or having to file an amended return only creates frustration and wastes time.
- Get together your documents in advance and keep it handy throughout the year in a place that is easily accessible. Use a system that works for you.
- Do everything early. Don’t wait until the last minute because sometimes corrections are needed, technology isn’t fully reliable, and last minute appointments at your local accounting agency are improbable. When in doubt, file an extension.
- If you use an e-filing method, choose a trustworthy vendor and use a secure, encrypted connection (look for the security lock symbol) on a compatible browser (I recommend Mozilla). Print out a copy of the return (in .pdf format) for yourself and check your e-mail for status updates from the IRS and local state offices. Save this information in a safe place.
It’s not all inclusive and I’m still learning, but if a rookie like me can figure it out with a little bit of effort, I have full faith in your ability to do so as well. Good luck!
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