Tax preparation can be costly and time-consuming but assistance and resources are available to help you get through tax season.

Reducing Tax-Time Stress

Dealing with personal finances continues to be a leading cause of stress, and during tax season it takes center stage. Here are a few tips to help manage tax-time stress:

• Start early: Trying to meet a deadline at the last minute is always stressful – and this one is to the IRS. Start preparing and reaching out for assistance as early as possible. The IRS offers steps to get a jump on your taxes.
• Break it up: If you’re preparing your taxes yourself and it’s complicated, don’t try to tackle it all at once. Instead, divide the job up into manageable chunks. 
• Know your options: Free tax services are available to help with cost and preparation (see below). If needed, you can also file an extension or set up a payment plan with the IRS.
• Think ahead: Improving your money management skills may be the trick to making tax season less stressful next year. MHealthy has compiled resources to help with understanding financial basics, managing money and debt, and more.

Free and Easy Tax Preparation

If you are worried about the cost or complexity of preparing your taxes, resources are available to help qualified individuals file:

• The IRS offers free basic tax return preparation to qualified individuals:
  • The Volunteer Income Tax Assistance (VITA) program offers free tax help to those who make $57,000 or less, with disabilities, or who speak limited English.
  • The Tax Counseling for the Elderly program offers free tax help to those who are 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors.
• United Way offers free tax preparation assistance:
  • Southeastern Michigan families can connect with VITA programs through United Way’s partners Wayne Metro Community Action Agency and Accounting Aid Society. 
  • Individuals of any income have access to MyFreeTaxes, a free service that uses the same tax filing software that professionals use.

Smart Ways to Use Your Refund

Once you receive your tax refund, your next question might be what to do with it? Most experts recommend first taking care of basic needs like housing, food and utilities, paying off debt and, if possible, building a financial safety net.

If you don’t need your tax refund for essentials right now, this article from NerdWallet includes seven ideas on how to get the most out of your tax refund.