We are very thankful for another successful and busy tax season! Now that our busiest time of year is slowing we would like to take the time to share some valuable tips on how to plan and prepare for the 2015 tax season, this makes for a successful and smooth tax time for our clients and preparers. Here at Skyward we like to do our very best in assisting you, our clients with making tax season better
Make Plans Now for Next Year’s Tax Return
Most people stop thinking about taxes after they file their tax return. However, there’s no better time to start tax planning than right now. And it’s never too early to set up a smart recordkeeping system. Here are five IRS tips to help you start to plan for this year’s taxes:
- Take action when life changes occur. Some life events, like a change in marital status, the birth of a child or buying a home, can change the amount of taxes you owe. When such events occur during the year, you may need to change the amount of tax taken out of your pay. To do that, you must file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer. Use the IRS Withholding Calculator on our “tax Calculators” web page to help you fill out the form. If you receive advance payments of the premium tax credit it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace.
- Keep records safe. Put your 2013 tax return and supporting records in a safe place. That way if you ever need to refer to your return, you’ll know where to find it. For example, you may need a copy of your return if you apply for a home loan or financial aid. You can also use it as a guide when you do next year’s tax return.
- Stay organized. Make sure your family puts tax records in the same place during the year. This will avoid a search for misplaced records come tax time next year.Create a filing system that will keep you organized throughout the year so when it’s time to file your return, you know where everything is.
- Think about itemizing. If you usually 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 mean some tax savings.
- Keep up with changes. You can also get Tips on IRS.gov or IRS2Go, the IRS’s mobile app. This helps to keep up with tax law changes, how to save money and much more.
Remember, a little planning now can pay off big at tax time next year.