Exerts from IRS Tax Tip- irs.gov
For many people, out of sight out of mind is the rule of thumb once they have filed their tax return. However, there’s no better time to start tax planning than now! Setup a smart recordkeeping system- you’ll be thanking yourself come tax time.
Here are some tips as 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. If this occurs, 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 with your employer. 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 documents in a safe place. You man need to refer to your return for a home loan or financial aid, or 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.
- Shop for a tax preparer. Choose a tax preparer wisely. You are responsible for the accuracy of your tax return no matter who prepares it.
- 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. A donation to charity could mean some tax savings!
- Keep up with changes. Rules and regulations change regularly so keep informed.
Remember, a little planning now can pay off big at tax time next year.
