- Posted August 12, 2013 by
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Westhill Consulting Financial: How To Start Planning Next Year’s Tax Return
Make next year easier by following this tips.
Adjust your withholding. Millions of American workers have far more taxes withheld from their pay than is required every year. Maybe its time to evaluate your withholding to make the taxes withheld from your pay closer to the taxes you’ll owe for this year. Apparently this is truer if you usually get a bigger refund and you want more money in your paycheck. You may need to increase the federal income tax withheld from your wages if you owed tax when you filed.
Store your return in a safe place. Put your previous tax return and supporting documents somewhere safe because this might come handy in the future if you will be needing it and you will know where to find it. For instance, you may need a copy of your return when applying for a home loan or financial aid. And you can use it as a helpful guide for next year’s return too.
Organize your records. Set up one location where everybody in the house can put tax-related records for the entire year. This will prevent a mixed up for gone astray mileage logs or charity receipts come tax time.
Consider itemizing deductions. If you always claim a standard deduction, you can decrease your taxes if you itemize deductions instead. If your itemized deductions in general fall just below your standard deduction, you can ‘bundle’ your deductions. For in case, an early or extra mortgage payment or property tax payment, or a planned donation to charity could equal some tax savings. Preparing an approach now that works the greatest for you can pay off at tax time next year.