Happy Tax Day!
That might seem like a contradiction in terms. Happiness and taxes? Most of us don’t relish the idea of doing our taxes – even if we’re expecting a refund.
I know it’s not my favorite way to spend a Saturday afternoon.
Like my youth leader used to tell me when I was growing up, there are only three certainties in life: being born, paying taxes, and dying.
Two of the three of those aren’t all that appealing.
Or as Benjamin Franklin put it, “Nothing is certain but death and taxes.”
There’s even a name for the fear of paying taxes and the IRS: forosophobia.
While earning my master’s degree in accounting, tax was one of two classes where I didn’t earn an A. (I missed an A by half a percentage point!)
Taxes and auditing were also two of the reasons I didn’t earn my CPA.
Clearly, tax is not my favorite subject.
Still, when people learn that I have an accounting background, I am frequently asked tax questions. It’s true that I have probably studied taxes more than most of the 165 million people who filed taxes in 2022. That doesn’t make me an expert.
I know enough to file my own taxes while consulting the IRS and other sources. It’s enough to get the job done.
It’s not so much that I don’t dread tax season. It’s not so much that I don’t worry a little that I’ve made a mistake. (I’m a perfectionist! I’m always a little stressed about that.) It’s also not so much that I have no worries that I’ll get audited.
Did you know that roughly ninety-nine percent of taxes aren’t audited?
If paying taxes is a constant in our lives, is there a way to make the experience more palatable?
Surprisingly, I think the answer is yes.
There were a few things that made paying my taxes easier this year. First, I have been setting aside a percentage of each week’s taxes. I was using the Catch.co app to do this automatically until they went out of business earlier this month. Now I transfer the money into savings and tag it for taxes when I do my budget each week.
There are similar apps out there, but I haven’t tested any of them. If you have one you like, let me know.
Second, I have been tracking my business expenses, such as mileage and networking lunches, in a Google spreadsheet daily. I also categorize my weekly income and expenses in another spreadsheet. That way I can easily see what’s happening with my money.
Finally, I wanted to get a jump on my taxes, so I did them early this year. That way I could breathe easy when Tax Day came around.
If Tax Day is causing you extra stress today, or you want to breathe even easier next year, be sure to check out this week’s resource.
Stef
(xe/xem)
Golden Nuggets
Golden Word: relief from Latin relevare “to raise, alleviate, lift up, free from a burden,” Example: Xe was so relieved after finishing xyr taxes.
Golden Quote: In levying taxes and in shearing sheep it is well to stop when you get down to the skin. – Austin O’Malley
Golden Speech: How to protect your brain from stress | Science journalist, Niki Korteweg, PhD, shares the four most important things you can do to keep your brain healthy and working at its very best. (Clip 24s)
Golden Statistic: Only 0.38% of all tax returns are audited, while 1.27% of low-income earners are audited. (Syracuse University)
Golden Term: framing occurs when people make a decision based on the way the information is presented, as opposed to just on the facts themselves. Remedy: rephrase the information to see if that influences your conclusion. (Corporate Finance Institute)
Golden Tip: Make tax preparation part of your regular financial hygiene. Many small steps are easier than one giant push at the end.
Golden Question: Do you feel prepared to face your taxes? What’s one small improvement you can make now?
Golden Resource: 12 keys to finding relief on Tax Day (Download PDF)