5 Ways to Stay On Top of Your Taxes
Now that tax time is over for the year, it is tempting to relax and not think about your taxes again for another 11+ months. While this may seem very appealing, you would actually save yourself time (and maybe even money) if you go ahead and start thinking ahead for next year’s return. Here are five easy ways to stay on top of your taxes in the coming year.
The key to making tax preparation easy for the coming year is organization. You can work now to set up a filing system for all of your tax-deductible receipts, including medical bills and other important work related documents that you might need next April.
If you have all of your important documents in one place (electronic or paper file), you will be way ahead of the game once it comes time to begin work next year.
The other thing to keep handy is your tax return from last year. You are, of course, required to keep this for audit purposes, but it also has important information that you will need for next year’s return.
Think ahead about how much you would like to contribute to charity in the coming year and of any other deductions that you want to take advantage of, so that you can maximize your deductions next tax season. Planning this out and keeping all of your receipts organized will help you save time and money on next year’s return.
3. Review Your Withholdings
Now is also a great time to look at how much of your paycheck is being withheld for taxes each month.
If you received a very large refund this year, it may mean that the government is taking a bit too much from your pay and you could make an adjustment to increase your monthly income.
Or, if you paid a sizable amount to the IRS, you may want to have more taken out of your paycheck so that you do not have to worry about a large tax bill again next year.
If you have a significant change to your tax status (marriage, baby, new job, etc.) then you will want to investigate how this will impact next year’s taxes so you’re not surprised by a hefty bill come April.
4. Decide How You Will File
If you have been cautious about filing electronically in the past, then make a plan to file electronically this year because there are many advantages. You’ll get your refund sooner and track its progress.
5. Decide If You Want to Partner with a Tax Firm
If you expect your taxes to get more complicated in the coming year, you feel that your audit risk is increasing, or you simply do not want to spend the time and effort on your return, this may be a year to partner with a tax firm. If you start now, you have plenty of time to do research and make sure that you find a tax firm that meets all of your needs.
Success Tax Relief is a full service tax firm that works with our clients 365 days a year to ensure that when April rolls around, you are ready to submit your return and have a solid idea of whether you will owe or get a refund. It is never too early to get ahead on next year’s return. Contact us today at 877-825-1179.