If you did meet the tax deadline this year, be proud yes, but it is time to plan for next year. Being organized and planning ahead can save you time, money and headaches, come the 2013 tax year. There are eight key things one can do to make next tax deadline easier, and they are listed below:
- Make an adjustment on your withholding
The best time to review your withholding and adjust it appropriately is now, especially if you would like extra cash in this year’s paychecks. In case you still owed at tax time, it is only wise if you make next year’s tax bill smaller. Use the IRS’s Withholding Calculator online for this.
- Keep your current return safe
At some point when filing the tax return for 2012, you may need to refer to your 2011 tax return. Therefore, you should put this return and any supporting documents somewhere secure for future reference and also to act as helpful guide for the coming tax year.
- Start record-keeping
It is time to be more organized and have a central place for all your tax-related records. Something as simple as a shoebox or a cabinet, can work well enough to keep your documents and receipts safer.
- Go through your paycheck
Review your paycheck to ascertain all the details of your withholding, retirement contributions, health benefits and charity deductions among others are accurate. Making the adjustments will not only save you a huge hassle next year, but will make a big difference as far as tax payments are concerned.
- Look for a tax professional
For those using tax professionals’ assistance, search for one now. This will keep you safe from anxieties and pressures of tax deadline. Be wise when choosing a tax professional since you are eventually responsible for your return’s credibility regardless of who prepares it.
- Plan to itemize deductions
Itemizing deductions can be quite advantageous, and with an extra mortgage payment, planned donations or strategic pre-deadline property tax payments, you could just get a boost. Plan these strategies now and they may pay off come next year.
- Strategize for tuition payments
It is time to take advantage of the American Opportunity Tax Credit’s services before they expire after 2012. This tax credit takes care of higher education expenses (up to $2,500) and it may be beneficial to pay 2013 tuition fees this year.
- Be updated
Get to know the tax law changes, learn the latest tax tips and get IRS announcements this year, just subscribe to the IRS Tax Tips.