Tax Day may have passed, but that doesn’t mean you should stop thinking about taxes. Whether you were happy with your tax return or you were disappointed to find you owed taxes this year, there are actions you can take throughout the next twelve months to be even more prepared for tax season next year. If you want to stay financially savvy and on top of your taxes, read on for some easy ways to prepare for Tax Day all year long.
1. Be Aware of Your Dependents and How You File
If you file taxes as the head of household, a married person filing jointly, a single person, or as another status, it can affect how much money is taken out of your paycheck each month for taxes. If you owed federal taxes this year, it could be because you claimed dependents on your W2 and ended up not taking enough money out of your paycheck. Some people might prefer to owe taxes rather than take out too much money from their paychecks each month (even though it means getting a tax refund). However, if you would like to reduce or eliminate the amount you owe, it could be a good idea to adjust how much money you pay in taxes from each paycheck throughout the year.
2. Create an Organizational System
Over the months of the year, you will accumulate tax documents that you will need when you file. Instead of having to gather them when the time comes, create a designated folder or some other location where all your documents can stay together. This way, when you need them at tax time, they’re all in the same place and you know exactly where that place is. This will also help ensure you are not missing any important documents that can affect how you file. You don’t want to find out that you didn’t file correctly or get penalized for an innocent mistake. This is especially important if you are a freelancer or self-employed.
3. Stay on Top of Tax Credits and Tax Breaks
There are a variety of tax credits and tax breaks out there for people in different situations, such as if you are a parent, if you bought a house, and so on. If you fit into a category of people who receive a tax benefit, it’s important to stay aware of that so you can take advantage of it. A tax professional can help you learn about different ways to save money on your taxes and receive tax benefits, so it’s a good idea to consult with experts before it is time to file your taxes.
We Can Help You Prepare for Tax Day All Year Long
Financial and tax experts like the ones at DeSantis, Kiefer, Shall & Sarcone can help you prepare for Tax Day all year long so that filing is painless and there are no surprises. Whether you are an individual or a small business, we can help you make smart decisions that affect your taxes and bring to your attention any tax benefits to which you are eligible.