For most taxpayers, the tax deadline has passed. But planning for next year can start now. As a reminder, being organized and planning ahead can save time and money in 2014. Here are six things you can do now to make next April 15 easier.
1. Adjust your withholding. Each year, millions of American workers have far more taxes withheld from their pay than is required. Now is a good time to review your withholding to make the taxes withheld from your pay closer to the taxes you’ll owe for this year. This is especially true if you normally get a large refund and you would like more money in your paycheck. If you owed tax when you filed, you may need to increase the federal income tax withheld from your wages. We can work with you to ensure that you are withholding an appropriate amount from your paychecks.
2. Store your return in a safe place. Put your 2012 tax return and supporting documents somewhere safe. If you need to refer to your return in the future, you’ll know where to find it. For example, you may need a copy of your return when applying for a home loan or financial aid. You can also use it as a helpful guide for next year’s return.
3. Organize your records. Establish one location where everyone in your household can put tax-related records during the year. This will avoid a scramble for misplaced mileage logs or charity receipts come tax time.
4. Consult your tax professional. If you use a tax professional to help you with tax planning, talk to them early to determine a tax plan. Your tax preparer will have more time when they’re not up against a deadline or anxious to receive your tax refund.
5. Consider itemizing deductions. If you usually claim a standard deduction, you may be able to reduce your taxes if you itemize deductions instead. If your itemized deductions typically fall just below your standard deduction, you can ‘bundle’ your deductions. For example, an early or extra mortgage payment or property tax payment, or a planned donation to charity could equal some tax savings. Planning an approach now that works best for you can pay off at tax time next year.
6. Keep up with changes. Find out about tax law changes that may affect you throughout the year. When a tax law changes, re-consult your tax professional to ensure that your tax plan is still appropriate.
The professionals in our office can help you prepare for next year’s tax season now. Call us today.