Tax Tips for Future Tax Planning
You should always be checking with some of the top tax professionals in the industry to make sure your tax return is prepared accurately and that you have all the tax deductions so you can fully optimize all the tax resources available to you.
Call us at Fresh Start Tax LLC 1-866-700-1040 so former IRS Agents can audit proof your income or corporate tax return today.
With that said, these are the top tax tips to prepare to make tax time and tax season much easier.
1. Always important, adjust your withholding.
Right now is a good time to review your withholding and make adjustments for next year, especially if you prefer more money in each paycheck this year.
If you owed at tax time, perhaps you would like next year’s tax payment to be much smaller. This is a good time to change your withholding on your W-4.
You can use the very easy IRS’s Withholding Calculator at www.irs.gov or Publication 919,” How Do I Adjust My Tax Withholding? “
2. Store your return in a safe place. Have a safe back up on disc or in the clouds.
Put your 2011 tax return and supporting documents somewhere secure so you’ll know exactly where to find them and if you receive an IRS notice and need to refer to your return.
Remember, the IRS usually goes back 3 years for tax audits. Make sure you keep all receipts for a minimum of 3 years.
3. Organize your record keeping.
You should establish a central location where everyone in your household can put tax-related records all year long. Anything from a shoebox to a file cabinet works. Just be consistent to avoid a scramble for misplaced mileage logs or charity receipts come tax time. It is much easier to establish a system of filing at the beginning of the year. I know, this is like homework but it makes tax season much easier.
4. Review your paycheck.
Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle. You should have a professional tax preparer review all your documents.
5. Shop for a tax professional early or contact Fresh Start Tax LLC 1-866-700-1040
If you use a tax professional to help you with a strategic plan and make financial decisions throughout the year. You will have more time when you are not up against a deadline or anxious for your refund. Beware of filing fraud.
Choose a tax professional wisely. You are ultimately responsible for the accuracy of your own return regardless of who prepares it.
6. Prepare to itemize deductions.
If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, per-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings.
See the Schedule A instructions for expenses you can deduct if you’re itemizing and then prepare an approach that works best for you.
7. Strategies about tuition payments or other tax credits if you qualify.
The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires.
8. Keep up with changes during the tax year, mostly tax credits.
Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through www.irs.gov or IRS2Go, the mobile app from the IRS. The IRS issues tips regularly during summer and tax season.
The IRS emphasizes that each household’s financial circumstances are different so it’s important to fully consider your specific situation and goals before making large financial decisions.
If you have any questions call our tax professionals today and good luck.
