April 15 has come and gone and you’ve filed and paid your tax bill or you’re waiting for a refund . . . or you’re waiting for October 15 when your extension expires.
No reason to even think about next year’s return, right?
If you invest some time now in next year’s return, you can not only make your life easier on April 15, 2014 but you just might save yourself some money. So, you might ask, what should I do now?
Take the following five steps . . . you’ll definitely be glad you did:
- Set up a logical filing system for 2013. It can be as simple as a large envelope marked “2013 Tax Documents” or a folder with several dividers so that you can easily store or retrieve receipts for donations, real estate bills, mileage logs or other documents you will need to prepare your federal and state returns.
- Take a look at the amount of money you allow the government to withhold from your paycheck. If you typically get a large refund and would like to invest or save money, plus interest, rather than let the U.S. treasury hold on to it, interest-free, you can reduce the amount withheld to make that happen. If, on the other hand, you owe taxes each year, you can increase the amount withheld and avoid having to come up with a tax payment to accompany your return. If you want to make sure you make the right withholding decision, up or down, consult with a tax professional before you make any adjustments.
- While online tax returns can be quick and cheap, they can cost you a tax refund you never even knew existed. That’s why you should consult with an experienced tax professional to help you plan to legally minimize your tax liabilities.
- Call your tax professional (CPA or Enrolled Agent) and schedule a meeting now to discuss your tax situation, what changes may be in line for the current year, and steps you can take to reduce the taxes you pay.
- Call your CPA to schedule a meeting to discuss your financial situation. Are you adequately insured? Will you have sufficient funds to retire? If you are approaching retirement age, what strategies are available to maximize your social security benefits? Discuss your investment concerns and market risk tolerance with your CPA who can provide you with some impartial considerations and ideas that your investment advisor may not be aware or sharing with you.
Note: Because each person has unique needs and because tax laws are subject to change without notice, we invite you to call 610-594-2601 today to make an appointment to discuss your tax plans and financial strategies for 2013.
The author wishes to thank BusinessWriters.Biz, a marketing company, for its contributions to this article.
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