Taxes Made Easier

It is tax time again and I have started working on mine. One benefit of using software like TurboTax to help as you file your taxes every year is the ability to import data. Starting your taxes is a matter of loading information from the previous year and then you don't have to re-enter data that doesn't change very often like your address and dependents. You only need to review it.

This year I have made an effort to do as much auto importing of data as possible. W2 information is readily available and I have used that in the past. This year I have gone one step further and auto imported my stock brokerage data. Once I figured out the secret of having the tax program log into my account, it greatly simplified that section of my taxes. The secret is knowing your account number and reading the directions provided by the tax program to have it log in correctly. Don't worry, you don't have to provide your password.

One area where this failed is when I tried to auto import one of my interest statements sent from a bank. The amount is less than $25 as banks don't really pay much interest any more. I tried several times to find a 24-digit number listed at the bottom of the 1099-INT form only to get an error when I entered it. In the end I gave up and entered the bank name and amount. I should have done that first as the bank name and amount came to less than 24 characters.

I still have a few more nights of working on my taxes as I go through my spending to try and find all of my charitable contributions and possible deductions. As of now that may be a waste of time as the standard deduction is more than my itemized ones. Unfortunately I won't know until I enter all of the numbers. Last year it paid to itemize. If it doesn't this year, I may skip that step next year.

The major lesson I am learning this year is to take advantage of importing as much information as possible. That reduces the probability of typing mistakes and ensures I am not going to be audited, something I have yet to experience and never want to. Hopefully this post encourages you to try something new that helps streamline this painful and annual process.