After putting a hectic tax season behind the last thing most taxpayers want to think about this time of year is collecting paperwork and crunching numbers again. But if you would like to make next year’s tax filing a little less stressful now is the perfect time to set up a smart record keeping system to smooth the process when filing season rolls around again. Here are six tips from the IRS to help you begin a successful organizing plan for this year.
- When major life changes occur take action quickly. If your marital status changes a child is born or you purchase a house the amount you owe for taxes can change also. It may be necessary to change the amount of taxes taken out of your pay when such events occur. To do that you must file a W-4 Employee’s Withholding Allowance Certificate with your employer. Contact Lindemeyer CPA for help filling out the form. If you receive advance payments of the premium tax credit it is important that you report changes in circumstances to your Health Insurance Marketplace.
- Find a safe place to keep records. Put your 2013 tax return and supporting records in a safe place. If you ever need to refer to your return you will know where to find it. If you need a copy of your return and applicable receipts they are all in one place if you ever apply for a home loan or financial aid. This information can also serve as a guide when you do next year’s tax return.
- Keep organized. Put tax records in the same place during the year. This will avoid the search for misplaced records when tax season rolls around next year.
- Choose a tax preparer. If you would like to hire a tax preparer to help you begin planning start your search now. Choose a tax preparer wisely and understand that you are responsible for the accuracy of your tax return no matter who prepares it.
- Think about itemization. If you usually claim a standard deduction on your return you may be able to lower your taxes by itemizing deductions instead. Charitable donations or home offices could mean tax savings. See the instructions for Schedule A Itemized Deductions for a list of deductions.
- Keep up with changes. Subscribe to IRS Tax Tips to get emails about tax law changes how to save money and more.
A little planning along the way can add up to big time savings at tax filing time. If you need a tax preparer in the Louisville area who can help you create a plan of organization and keep you up-to-date on the latest tax changes contact Lindemeyer CPA and we will help you stay on top of things before the April 15 crunch time.