3 Must-Do Actions To Prepare for Tax Season
Tax season comes at the same time every year, so it shouldn`t be a surprise when April 15th rolls around. The best time to think about filing your taxes is right after you have filed the current year`s returns. Though many delay their filing and run the risk of needed a tax lawyer Ormond Beach FL to get them out of a massive IRS debt or late fees, proper planning can limit the confusion and stress often associated with filing your taxes.
Double Check Your Filing Status
If your recent return had significant amounts of money owed or a large return, you may want to review your filing status. The goal should be to break even with the IRS. Look at how your status may change over the course of the next year, either through the birth of a child or marriage. Recalculate your withholdings and adjust as necessary.
Set Up a Records System
Did you scurry around this year trying to find receipts or looking for paperwork? Avoid wasting your time by keeping accurate, organized, and detailed records all year. Have a designated filing folder or organizer set aside just for tax purposes. Be diligent about filing important records away.
Maximize Your Deductions
Things like charitable donations or retirement savings can give you a tax break at the end of the year. While you don’t want to give away all your money, consider changing your retirement contributions to bring you a tax benefit now and give you more money later on. Don’t forget about medical expenses, vehicle registration, and childcare. Tax professionals can help you maximize the money you can get back.
Whatever you decide to do about your taxes, strive to file on time, or request an extension. Never just ignore your tax responsibilities. Be honest and have the paperwork to support your status or deductions. Start now, and you will be in better shape for the next April 15th.