Make Plans for Next Year’s Tax Return

Most people stop thinking about taxes right after they file their tax return, but there is no better time to start tax planning for 2014 than right now. Also, it’s never too early to setup a smart recordkeeping system. Here are some tips from the IRS to help you start to plan for the 2014 tax year: 1) Take action when life events occur Some life events, like a change in marital status, the birth of a child or the purchase of home, can change the amount of taxes you owe. When such events occur during the year, you may need to change the amount of tax taken out of your paychecks. To do that, you must file a new form W-4, Employee’s Withholding Allowance Certificate, with your employer. Use the IRS withholding calculator on irs.gov to help you fill out the form. If you require some tax planning, let your tax preparer know about these changes in your life and we can help you plan for them! 2) Keep records safe Put your 2013 tax return and supporting records in a safe place. That way if you ever need to refer to your return, you’ll know where to find it; this situation often comes up if you apply for a home loan or financial aid. You can also use your 2013 tax return as a guide when you gather documents for next year’s return. Start a new place for your 2014 documents and try to keep them organzied with software or spreadsheets. 3)Stay organized Make sure your household puts tax records in the same during the year, every year. This will avoid a frantic search for misplaced records come tax time next year.