Most people have already filed their tax return for this year. However, it’s never too early to start thinking about next year. By starting your tax planning early on, you can save yourself a significant amount of time and money in 2019.
Also, read: A Quick Income Tax Checklist for Individuals and Married Couples
With this in mind, here are a few steps you can take to help yourself get ahead for next year’s tax season.
- Adjust your withholding: Every year there is a significant number of Americans who have more money withheld from their paychecks than is necessary. If you wish, you can review your withholding now to make the money withheld from your paycheck closer to the amount of taxes you’ll actually owe to the government for this year. This is especially something you should look into if you got a large tax refund and would rather have more money coming your way in your paychecks. The inverse is true too—if you discovered you had to pay in quite a bit of money, you might need to adjust your withholding so you’re not hit with a lump sum payment at the end of the year.
- File away your return for easy access: Put your tax return and all supporting documentation somewhere safe that is also easily accessible for your reference next year.
- Organize all your records: You should have one established location in your home or office where you keep all of your tax-related records during the year, including receipts and mileage logs, so you don’t have to scramble at the end of the year to figure out what you did with them. This will make it much easier to get the deductions you’ve earned.
- Start searching for a tax pro: This is especially important if you’ve been doing your own taxes and are sick of having to do all of the math and filling out of forms yourself. If you get started now in your search for a tax preparation professional, you can work with them throughout the year as well to ensure you’re staying organized and will be in a good place come tax season.
- Consider itemizing: If you usually claim the standard deduction, there’s a chance you’ll be able to pay fewer taxes if you itemize. If you have itemized deductions that fall just below the standard deduction, you can still bundle those deductions to get some extra savings. By planning that approach early, you’ll be able to minimize your tax payment next year.
- Stay up to date with the latest news: The new Tax Cuts and Jobs Act is just one major change to tax law you’ll need to familiarize yourself with this year—there could very well be more to come. Stay on top of all the latest news so you’re prepared next season.
For more information about what you can do to get ahead in your tax planning, contact us today at MCG Solutions.