Have you done your taxes? It's not too late.

30 March 2011

I used to be a huge procrastinator when it came to taxes. Back then, I was always afraid I’d owe money and the fear of finding that out would paralyze me. Not smart, I know. But it was my emotions, not my brain, making that decision.

I’m happy to report that I haven’t filed an extension since 2007. That’s mostly because my husband took over taking care of our personal finances and all I handle is my business’s, so there’s no longer a mad rush to catch up on entering data and so forth. I am the one in our family who prepares the taxes, however. (Thank you, TurboTax.)

We filed our taxes earlier this month and we’ve already received the refunds. Looking back at the procrastination and panicky feelings that accompanied even thinking about taxes, compared to the peace I now feel about them, here’s what pops to mind:

Since you have to do your taxes eventually, you might as well save money and do them on time.

Filing your tax-related documents throughout the year (I use Freedom Filer to make it easy), sure beats frantically searching for them at tax time.

Using financial software like Quicken or Quickbooks (and entering as you go throughout the year, something I’m only just now getting the hang of) takes the stress out of tax preparation.

Not knowing that you owe the IRS money doesn’t make things any better. Better to find out just what you owe as soon as possible so you can figure out where it’s going to come from.

Once you’ve dealt with paying the IRS, it’s smart to figure out how to avoid it next year.

Getting an ample refund may not be smart money management (why give Uncle Sam an interest-fee loan?) but it sure is beats writing a big check on April 15!

Speaking of April 15, I wanted to make sure you’re aware that this year taxes are due on Monday, April 18. That’s because April 15 is a holiday, Emancipation Day, celebrated in Washington, D.C., and all federal and D.C. offices will be closed. Emancipation Day, usually celebrated April 16 (a Saturday this year) commemorates the signing by Abraham Lincoln on April 16, 1862 of the Compensated Emancipation Act, which freed 3100 slaves in the District of Columbia, almost nine months before the signing of the Emancipation Proclamation. It was made a District holiday in 2005.

If you’re thinking about filing an extension this year, maybe you should reconsider. You still have 20 days. And if you’re like I used to be, you probably won’t start working on taxes until a couple of weeks before the new due date. Man, I do not miss that stress.

Tagged with: freedom filer, procrastination, taxes