Happy people tend to do their taxes a little differently. Unhappy people tend to quickly get through their returns without checking for additional ways to reduce their tax bills. Unhappy people are also often those that wait until the last minute to file or request extensions. As we’ll explain in this article, happy people are those who tend to file early, stay organized and search diligently for all possible deductions and credits.
Happy people tend to start preparing their tax returns as soon as all of their required documents are in-hand. Early filers often get their returns processed faster, resulting in their refunds being received earlier. Early February is a common time to start preparing tax returns.
Do you have itemized deductions in multiple categories? Organizing deductions and receipts by category is something that happy people do. Unhappy people are the ones that tend to take a shoebox full of receipts to their accountants to sort through. Keeping your documents organized helps the tax return preparation process go faster.
Seeking New Credits and Deductions
Happy people tend to take the time to seek out credits and deductions to reduce taxable incomes, reduce tax liabilities, and pad their refunds. New credits and deductions are made available to qualifying taxpayers often, so it is important to stay up-to-date on new tax laws, available credits, and additional deductions.
Even if you are typically unhappy, it is a good idea to get started on your taxes early. It is also a good idea to view the available deductions and credits and determine your eligibility to receive a larger refund, as many happy people do. Taxes don’t have to add to your unhappiness, they can actually bring a ray of sunshine to your life.
Image credit: Joe Goble