4 tips to make filing your taxes less taxing

Tax time is something that most people just want to get over with quickly, understandably. But we’ve got some tips to make the process less painful.

What you'll learn

• Gather your documents
• Check your potential credits and deductions
• File ahead of time
• Put your refund to good use

Gather your documents

W 2s? 1099s? Sounds more like Star Wars characters than financial terms. Gathering these important documents ahead of time makes tax filing less painful. The most common documents are a W 2 (employment earnings) and various forms of 1099s (self employed earnings, interest or dividends, Social Security benefits, etc.).

Additional documents may include those related to your deductions or credits, such as interest specific statements for student loans or mortgages. Others may be retirement or savings related, like IRA contribution records or pension distribution forms.

Missing any documents? Track those down now and request them from the appropriate source. Procrastination won’t win here and may cost you for filing late.

Check your potential credits and deductions

Something to look forward to when doing taxes is credits and deductions—aka legal ways to lower the taxes you owe. Credits can reduce your total tax amount due, while deductions can reduce your taxable income. Credits can stem from ongoing dependencies like children or education, while deductions are related to event based expenses like donations or medical bills.

Find out what credits and/or deductions may be possible for you and your family on the IRS website. Maximize these where you can but stay honest or the IRS will reach out to you. And then you may have penalties on top of what you owe.

File ahead of time

Depending on the number of jobs you’ve had, your income streams, the items your claiming, whether you’re filing solo or jointly, or doing them yourself or hiring a professional, your taxes can take anywhere from a few hours to several days. Then, after filing, IRS acceptance can take a few days via online filing or a few weeks through the mail.

As with most years, the official deadline for filing your taxes this year is Wednesday, April 15. (This only changes if April 15 falls on a weekend or holiday.) So whether you’re waiting until the last minute or already filed, we encourage you to take a little stress off your plate and file as early as you can.

Put your refund to good use

While some may have their sights set on a splurge, there are smarter ways to use that money to help you get ahead financially. Depositing your refund into a high-yield savings account is a great way to help your money grow while keeping it accessible. If you have multiple savings goals, such as a vacation, electronic upgrade, or simply a standalone goal, you can create another supplemental savings account (up to 19 total!) with Alliant so you have a clear view of your progress against your specific savings goals

Or if you can spare it, putting your refund in a Certificate is a good way for it to grow at a higher rate for a set amount of time. You’ll just want to be sure you don’t need it for the term of that certificate.

You’ve got this. Gather what you need, file as early as you can, and then enjoy the relief of being done!