Many surprises could arise from now until next April 15, including life changes and new tax laws.
Minimize your tax liabilities throughout the year, not just when April comes around.
Right now is the best time to create a system that better organizes your taxes and gets you a head start on next year’s filing. IRS offers some handy advice on how to do just that:
- Life events may change the amount of taxes you pay, including a change in marital status or the birth of a child. When they happen, take action – you may need to change the amount of tax withheld from your pay.
- If you enroll in insurance coverage through the Health Insurance Marketplace in 2015, report any changes in circumstances to the Marketplace when they happen, such as changes in your income or family size. Doing so will help you avoid getting too much or too little financial assistance in advance.
- Stay organized and store your 2014 tax return and supporting records in a safe place. If you ever need your tax return or financial records, it will make access easy if applying for a home loan or financial aid. You should also use your tax return as a guide when you do your taxes next year.
- Shop around now for a tax preparer or a second opinion. If you want to hire a CPA to help you with tax planning, start your search now. Choose wisely to find a tax preparer in your area with the qualifications and capabilities you need. (See 4 things you should ask before hiring a tax preparer)
- If you claim a standard deduction on your tax return, you may be able to lower your taxes if you itemize deductions instead. A donation to charity could also mean some tax savings.
- Stay up to speed by subscribing to IRS Tax Tips or to our newsletter to get information about tax law changes, how to save money, and much more.
Just because tax season is over for another year doesn’t mean you should stop thinking about it. By planning ahead, you could save yourself a big headache next year.