You may be tempted to forget about your taxes once you’ve filed but some tax planning done now may benefit you later. Now is a good time to set up a system so you can keep your tax records safe and easy to find. Here are some tips to give you a leg up on next year’s taxes:
- Take action when life changes occur. Some life events can change the amount of tax you owe. Examples include a change in marital status or the birth of a child. When these happen, you may need to change the amount of tax withheld from your pay. To do that, file a new Form W-4, Employee's Withholding Allowance Certificate, with your employer. Use the IRS Withholding Calculator tool on IRS.gov to help you fill out the form.
- Report changes in circumstances to the Health Insurance Marketplace. If you enroll in insurance coverage through the Health Insurance Marketplace for 2016 coverage, you should report changes in circumstances to the Marketplace when they happen. Report events such as changes in your income or family size. Doing so will help you avoid getting too much or too little financial assistance.
- Keep records safe. Print and keep a copy of your 2015 tax return and supporting records together in a safe place. This includes W-2 Forms, Forms 1099, bank records and records of your family’s health care insurance coverage. If you ever need your tax return or records, it will be easier for you to get them. For example, you may need a copy of your tax return if you apply for a home loan or financial aid for college. You should also use your tax return as a guide when you do your taxes next year.
- Stay organized. Make tax time easier. Have your family put tax records in the same place during the year. That way you won’t have to search for misplaced records when you file next year.
- Think about itemizing. You may be able to lower your taxes if you itemize deductions instead of taking the standard deduction. Owning a home, paying medical expenses and qualified donations to charity could mean more tax savings. See the instructions for Schedule A, Itemized Deductions, for a list of deductions.
- Stay informed. Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through IRS.gov or the IRS2Go mobile app. Of course, we will post the latest tax news and other related info on our Blog so check back frequently! You can also SUBSCRIBE to our email newsletter to ensure you’re always up-to-date on the latest tax news.
- Acquire a licensed tax preparer. William D. Truax and his friendly team of EAs and licensed tax preparers have been helping individuals and businesses with tax planning for nearly 40 years. They understand how important finding the right tax professional is and offer a full spectrum of financial services to help make the decision a little easier including:
- Tax Planning and Preparation
- IRS and State Representation
- Accounting Services
- Payroll and Business Management
- Financial Statements
- Trust & Estate Taxes
In addition, Mr. Truax is a member of the Bar of the United States Tax Court – a privilege very few non-attorneys have ever been granted. He is also a fellow and Accredited Tax Advisor of the National Association of Tax Professionals and a member of the National Association of Enrolled Agents.
For more information, please visit www.truax.net or click below to schedule a free consultation today!