3 Tips to Overcome Tax Anxiety

I received my 1099 in the mail a few days ago, and it reminded me just how much I'm not looking forward to preparing my taxes this year. I'm in the habit of always preparing my own taxes, and am completely comfortable with it. That's not the problem. My fear is that I will owe money on income tax. That has me overly anxious about this upcoming filing. This is the first year where I have worked as a contractor all year long. Many of you have been doing this for years, but I'm just getting started.

The truth is - any anxiety I have is my own fault. That's right - I brought it all upon myself. Someone wise told me that the first step to overcoming a problem is admitting that you have a problem. Well, there. I have a problem that keeps me awake at night. It keeps me from focusing on being my best each day. I tread that ticking clock going for April 17, 2012. Each day I feel that January is passing too quickly.

Here are a few things I plan to implement to overcome tax anxiety:

1. Do something fun. Whenever you start thinking about your taxes, resolve to do something else fun (preferably something that doesn't cost any money). This will relax your mind and (at least temporarily) help re-focus your attention on something more positive.
2. Start organizing your receipts early. When you are prepared, your mind is much more at ease. This also goes back to my point on why schedules are important.
3. Just do it. That's Nike's slogan, but it's also very relevant to everyday life. The more time you spend being anxious about something, the more anxious you become. Get it out of the way so that you can focus your energy on more productive things.

I haven't yet made it to the "do it" stages yet, but I am in the planning stage. While it's true that I should have prepared for tax time much earlier, my mind is much more at ease knowing that things are coming together. 

Have you done your taxes yet? If not, what's stopping you? Anxiety? Procrastination? Something else? How do you plan to overcome tax anxiety?

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5 Office Upgrades for Last Minute Tax Savings

Psst...want to listen to this post? Find the audio at the bottom...

You're reading this. That means one of two things. You are already working as a freelancer, solopreneur, etc. or you are interested in starting a business. For those of you who already have your own business, it's time to start thinking about tax time. That's right - with the end of the year less than two days away, that puts tax time right around the corner. My gut instinct tells me that you've been doing that all along, but that's not the point of today's writing. You're reading this today because you want to catch a break on your taxes - and more specifically, find out about how to take advantage of last minute tax savings.

Do you have any cash in the bank (or in your pocket)? If not, there's no point in reading any further. If you do, listen up...

Look around your office. What do you need? What will make your work life easier? Have you been considering the purchase of new technology equipment or even smaller purchases such as printer ink? Now is your last chance to buy these things and deduct the cost as business expenses on this year's income tax filing. If you can't think of a list of things you need for your business, here are a few to consider:

1. A new computer: It's important to keep up with technology in your personal life. It's even more important to keep up with technology for your business. You have to make sure you have the latest and greatest in technology because your clients expect it and you deserve it. If you are working on a system that is more than 3-4 years old, it is definitely worth it to consider upgrading.
2. Upgraded software: If you are still running Office XP, there is something wrong with that picture. That software debuted in 2001. It's over 10 years old. People are sending .docx, .xlsx, .pptx, etc. files. You need to be able to open them. At the very minimum, you should have Office 2007, though Office 2010 is preferred. Check all of your other software to make sure that it is current. Software that is over 5-6 years old is not current. It's time to upgrade.
3. Industry-related books: You have to keep up with what's current in your industry. Often, you can find trends, etc. online. However, for in-depth reading, an eBook (compatible with your eReader of choice) or print book is probably a better choice.
4. New desk/office chair: Is your desk meeting your needs? Does your chair provide sufficient ergonomic support? If the answer to either (or both) questions is no, you may want to look into buying a new desk or chair.
5. Office supplies: This is something that every business owner needs and the one thing that you can never have enough of. We're talking paper, pens, printer ink, staples, etc. Essentially, office supplies can be any of those little things that are necessary for running a successful business.

Certainly there are other upgrades to consider, but I think all of us can find something to shop for from this list. If you don't have anything to shop for (unlikely), don't buy stuff just for the last minute tax savings. After all, if you purchase something you don't need, you're not really saving. The idea here is to increase UTILITY then promote SAVINGS. Your main focus should be on improving your working conditions/environment. 

What's on your "before the new year" shopping list? Do you need some help coming up with something to purchase? I'm glad to help. Drop a comment below or find me on Twitter (@eliseconnors).

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