Stop Thinking About Taxes As an April Problem

"Taxes aren't a problem. They shouldn't be something you think about or worry about at all. They're a fact of life. Something that should be happening in the background, like central air conditioning. You don't necessarily notice it if it's working, but if it breaks, it's uncomfortable. You adjust to heat or AC as needed. That's how taxes should work. You set the temperature and things adjust."

"The tax deadline for most people is April 15th, but anyone who is smart and in control of their financial life knows your accountant should receive most of your documents in February, get an estimate of what you owe by March, pay what your accountant estimates that you owe, and then go on extension and file in October. Want a stress free tax year? Do tax projections in July and October. Assume you're going on an extension."

Organize and prepare financial documents year-round and store them in a single digital folder labeled TAXES [YEAR]. Do tax projections in July and October and assume an extension to file in October while still paying estimated taxes by the April deadline. Save expected tax liabilities in a separate high-yield savings account. Self-employed individuals should make quarterly estimated payments and maintain clean books. Track investment gains, losses, and distributions and plan for RMDs, charitable giving, and 529 contributions. Pay for quality CPA advice, keep communication year-round, and account for state tax obligations.

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