Why You Should Already Be Planning for Next Tax Season
July 8, 2019
April 15th has come and gone, but before you know it you will be gearing up for the next one. Just because the next tax season seems far away, it’s important to stay on top of planning. So, this is a perfect time to reflect on what you can do to make prep for next year as pleasant as possible. To help lessen taxes and increase your tax refund in conjunction with your next tax return, planning throughout a given tax year is crucial. We want to give you a few tips for tax planning to make next tax season as seamless as possible.
Keep your records tucked away in a safe place.
You don’t want to enter the next tax season with records that are in disarray. Make sure you have all of the tax records you’ll need before filing. This list includes any receipts, all records that support income, deductions or tax credits that you claim on your tax return.
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Get organized!
Preparing tax returns, gathering the right documentation, and making sure everything you filled out is correct can give the most organized person some anxiety. That’s why it’s important to not wait to organize! Waiting until the last minute will certainly add stress, which can be avoided through organization. Like stated above, you’ll want to gather all relevant documents and information throughout the year or prior to tax season beginning. You can also find the year prior’s tax return as a reference, proof of charitable donations you made during the year, any relevant property or real estate documentation, and receipts for any business, educational, or medical expenses. Also, investment earnings and interest payments need to be recorded. So make sure to have that documentation available, as well.
Protect yourself from fraud
Sadly, there always seems to be new tax scams emerging. Anytime you file documents that include sensitive information, for instance your Social Security number, take the necessary precautions to prevent your data from being compromised. Additionally, do not give your personal information to a third-party platform unless you are 100% certain your safety won’t be compromised.
Of course, having a tax professional manage your taxes is always the safest route, but if you are filing yourself, it should be done directly on the IRS website.
Figure out your filing status
Obviously, if you’re single, this part’s pretty simple. If you support any dependents throughout the year, just remember to claim head of household status. Most commonly this refers to children, but in some cases it could also be aging relatives, like a parent that is now dependent on you for care.
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If you’re married, you may assume to file jointly, but don’t jump into that just yet, because it might be better to file separately. You and your partner’s earnings, and how many itemized deductions you each have all take play into tax returns. You may want to run or have your tax preparer run some numbers to figure out which filing status makes the most sense for you and your partner.
Whether it be business or personal, the safest bet is to hire a professional tax accountant to manage all things taxes for you. A tax accountant can help you figure out the best path for you when it comes to your taxes. Not only that, but we know all of the updates on rules and regulations so you don’t have to stress out! That is where we come in! We are able to take care of your taxes, personal or business. To chat more about our tax services, simply fill out the contact form on the Contact Us page, give us a call at (906) 774-4051, or email us at solutions@f-ccpa.com. We're happy to help you with your tax needs!