Start Planning Now for Next Year’s Taxes

You may be tempted to forget all about your taxes for a while after you’ve filed your tax return early this year.   However, do not give in to that temptation. If you start your tax planning now, you may be able to avoid a tax surprise when you file your return next year. It is a good time to set up a system early so you can keep your tax records / documents in a location that is safe and easy to find. Below are some tips to help you get started on next year’s taxes:

• Take action when life changes occur.  Some life events can change the amount of tax that you may have to pay next year. Some examples may include a change in your marital status or the birth of a child. When this happens, you may need to change the amount of tax withholding from your pay check. To do that, you need to file a new Form W-4, Employee's Withholding Allowance Certificate, with your employer. 
• Report any changes in circumstances to the Health Insurance Marketplace.  If you enroll in an insurance coverage program through the Health Insurance Marketplace in 2015, you should report any changes in circumstances to the Marketplace when that happen. Report events such as changes in your income or family size.  It will help you avoid getting too much or too little financial assistance from marketplace in advance.
• Keep records / source documents safe.  Put your 2014 tax return and all the supporting documents in a safe place. If you ever need to look at your tax return or any source document, it will be easy 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. 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 members put all the tax documents and records in the same place, in a big envelope, for example, during the year. That way you won’t have to search for misplaced records when you need them next year.
• Think about itemizing.  If you are a home owner, you may be able to lower your taxes if you itemized your deductions.  For example, you can deduct both your mortgage interest and property tax that you paid on your tax return.  A donation to charity could mean some tax savings as well.
• Shop for a tax professional.  If you want to hire a tax professional to help you with tax planning, start your search early and choose your tax professional wisely.   You can also contact us to take care of your tax planning and filing needs.  We would be more than happy to assist you.

Please remember planning now can pay off with savings at tax time next year.

If you have any questions, please feel free to email us.

Your comments and feedbacks are welcome.
Source:  www.irs.gov.
Email:   Excellent-tax@gmx.com