5 Valuable Summertime Tax Tasks
Posted by: Brookside Admin
There likely aren't many that would consider the heat of summer as tax season, but there are some tax-related tasks that are best handled now. While many wait until spring to start thinking about their tax return, that's too late to make changes that can be felt right away. BankRate put together an interesting list of tax related moves to make now. These don't include additional year-end tasks you should take care of in December.
- Finish this year's return
Did you get an extension in April for your personal tax return? If so, you have until October to finish it, but experts recommend not waiting that long. If you're due any money back, you'll of course get it faster by filing now. Also, if you wait to file, you'll have less of a chance to check over your return and ensure its accuracy. That may lead to mistakes being made or deductions being overlooked.
- Adjust withholding
If you were forced to pay additional taxes after filing your return this year, you'll probably want to adjust the amount that's withheld from your paychecks with your employer. This way, you'll pay a little more throughout the year, but it will save you from having one large tax bill next year. Similarly, if you received a large refund this year, adjusting your withholding would allow you to get more money in each paycheck rather than waiting for tax time to get a lump sum. Only adjust your withholding if you're in the same situation as last year, however. If you've had a major change, like getting married, having a child, changing jobs or buying a home, you may not need to make adjustments to more accurately pay your taxes.
- Estimated taxes
If you earn money that isn't subject to withholdings at all, you may need to pay estimated taxes throughout the year. This typically means making four additional payments with one in each quarter, which saves you from paying a year's worth of taxes all at once. If you're already paying estimated taxes, now is a good time to reassess those to make sure you're paying the accurate amount. If you're not paying estimated taxes but do have a significant income without withholdings, now's the time to remedy that.
- Charitable donations
Summer is often a difficult time for charities, unlike the peak donation season around the holidays. Donations made now may be more needed by your chosen charity and they'll count the same on next year's taxes. All you'll need is a receipt from the charity noting the monetary value of your donation.
- Hire a pro
It's not too early to begin researching professional accountants. In fact, by hiring one early, you can avoid the rush of tax time and benefit from additional tax planning services that could help you be more organized and save on next year's taxes. You're also much less likely to run into frauds and unlicensed individuals who always seem to pop up around tax time.
If you need help with taxes, business services or a range of other accounting services, call the CPAs at Brown Kinion and Company. We serve the Tulsa area from our offices in Broken Arrow and Bixby.