Tax Planning Tips To Make Next Year's Taxes Less Stressful
Posted by: Brookside Admin
If this year's tax season was particularly difficult or stressful for you, now is the time to start planning for next year. By taking a few additional measures, you can greatly reduce the amount of money you owe at the end of the year and be more organized to put your return together. The IRS has a few recommendations for effective tax planning. Here are a few that we stand behind.
- Adjust withholding
One of the simplest ways to change the amount you owe at the end of the year is to change the amount that's withheld from each paycheck. In many cases, you end up oweing additional taxes with your return because you aren't paying enough taxes throughout the year. This goes the other way too. If you're gettinga large refund, it may be worthwhile to withhold less money so that your take home pay throughout the year is more. To change your withholding, ask your employer for a new W-4.
- Save your return
Keeping your return and the supporting documents will come in handy for a number of reasons. First, and most obviously, it's helpful to refer back to the previous year's return and documents when filing next year's taxes. Your tax documents will also be needed throughout the year if you apply for a loan or financial aide for school.
- Organize storage
One of the biggest pains of filing your taxes, and the source of much stress, is scrambling to put together all the necessary documentation. You can avoid these issues by establishing a filing system now that allows you to put all pertinent documents into one place that you can easily find and reference when tax time comes around next year. Should you decide to itemize deductions next year, it will be extremely handy to already have these documents saved.
The other option for making tax time less stressful is to hire a tax professional. At Brown Kinion and Company, our qualified CPAs don't just help you file your taxes, we also help you plan for next year. Give us a call to learn more about our tax services and how we ensure your taxes are filed correctly and you receive the refund you deserve.