After filing your tax returns, it is appealing to sit and wait for the next11 months to start filing your returns again. Many people tend to wait until the last minute to start rushing to file their tax returns. If you are one of them, you will want to start thinking about your next year’s returns early if you are to save yourself some time. Still, there are people who don’t file their returns at all and they make up the tax non-compliant lot.
It is very important to stay on top of your taxes. If you don’t, it will cost you more money when tax time comes around. The tax remitting time comes after we have spent a lot of shopping, entertaining and cooking for family and friends in the holiday season. Therefore, many people tend to forget about taxes.
You will need to start taxplanning in the time that you have between the holiday season and when youare required to file your returns.
The following are top five tips to help you stay on top your taxes going forward.
You also need to keep your last year’s tax return. It will come in handy, not only for audit
This is where you need to think about how much you will be donating to charity next year. You should go beyond that and think about any other deductions you would want to take advantage of. Keep in mind the fact that some deductions can maximize your next tax season’s deductions. Planning this outexplicitly by organizing all your receipts will go a long way into saving you valuable time and money come next year’s return. In case you forget, this isalso the point to think about the tax write-offs forsellers to save you money.
3. Review your withholdings
You need to know how much of your paycheck is being withheld for taxes monthly. There are cases where people receive large refunds. In that case, it means you are being overtaxed. A few adjustments can increase your monthly income. You can have more deducted from your paycheck if you have paid a large amount to the IRS to prevent the next year tax bill from being too large. Additionally, a change in tax status, such as marriage or a new job, can impact your next taxes. Therefore, it will be helpful to find out the impact of a change you have made on the next year’s taxes.
4. Determine the way you will file
If you haven’t been keen on filing your returns electronically in the past, make a plan to file electronically next year. Filing electronically comes with many advantages. If you file electronically, your refund will come sooner and you will also be able to track its progress.
5. Decide if you need help
This is the year you might need to look for a tax firm to help you out to sort your tax issues. Complicated taxes and increasing audit risk calls forgetting a qualified person or firm to help you out. You could also be too busy to spend your time on your returns. If you fit into those scenarios, it is time to do your research and look for a tax firm that will meet all your tax needs. It will take a qualified person or tax firm to conquer the tax season.
You are probably asking yourself what a qualified tax firm is made up of. You will want a tax firm that will work with you throughout the year to make sure when the time comes you are ready to file your returns. It will also enable you to know if you will get a refund or owe.