Tips to Start Planning for Next Year’s Tax Return

For most taxpayers, the tax filing deadline has passed. However, planning for next year can start now.   Being organized and planning ahead can save time and money in 2014, so here are a few things you can do now to make next April 15 a little easier.

Adjust your withholding – If your only source of income is your wages, now is a good time to review your withholding to make the taxes withheld from your pay closer to the taxes you will owe for this year.  This is especially true if you normally owe a lot or get a large refund and you would like to narrow that margin of error.  Give us a call and we can discuss how you can adjust your exemptions by completing a new Form W-4, Employee’s Withholding Allowance Certificate.

Organize your records – By establishing one location where everyone in your household can put tax-related records during the year. This will avoid a scramble for misplaced mileage logs or charity receipts come tax time.

Consider itemizing deductions – If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2013 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings.  Planning an approach now that works best for you can pay off at tax time next year.

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