I know you are thinking… I just got over Tax Season and no not want to think about it, let alone plan for next year. But it is actually a great time because it is still on your mind. Put a plan in place now, to be sure you are prepared and ready for the next time April 15th rolls around. Here are a few tips to get ready.
- If you do not have a filing system in place, this is a good time to make one. Some of us like the old fashion way of organizing your documents in a filing cabinet or box, while others like and have the ability to scan the documents and create a folder on your computer to hold everything.
- If you were not happy with this year’s tax outcome, determine why. Perhaps you need to adjust your withholding if you are still employed. It is an easy thing to do – Just contact the Human Resources Department and ask them for the form to adjust your withholding on your W-4. There is an IRS withholding calculator you can use or if you have an accountant that prepares your taxes they can advise you. This one step can make a difference next year.
- Take the time to gather everything you used for this year’s taxes and put it with any receipts or documents you have in your file system. This information gives you a guideline to follow for the new year. You will probably qualify for some of the same deductions which is a help calculating this year’s return.
- Circumstances change sometimes from year to year. Even though you previously did not itemize, does not mean you never will. Mortgage or Real Estate interest due to the purchase of a residence, medical expenses, student loan or education fees, childcare, IRA and charitable contributions are just some of the items that could affect the next year’s taxes.
- Saving for the future or retirement is and should be something you plan for from the time you are young and employed. If you are not participating in a 401K through your employer or have a traditional Roth IRA plan in place – look into starting one. This not only helps you save for the future but can affect your taxes year to year.
Now might be a good time to get some advice from a investment advisor so you can like the outcome next year when April 15th comes around, as it always does.