Carol McAtee & Associates, CPAS
It is time to….
Start Planning Now for Next Year’s Taxes
That’s right. If you start your tax planning now, you may be able to avoid a tax surprise when you file next year.
Now is a good time to set up a system so your tax records are safe and easy to find. Here are five tips to give you a leg up on next year’s taxes:
1. Take action when life changes occur. Some life events such as a change in marital status or the birth of a child can change the amount of tax you pay. When they happen, you may need to change the amount of tax withheld from your pay. To do that, file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer.
2. Report changes in circumstances to the Health Insurance Marketplace. If you are enrolled now or enroll in insurance coverage through the Health Insurance Marketplace in 2016, you should report changes in circumstances to the Marketplace when they happen. Reporting events such as changes in your income or family size helps you avoid getting too much or too little financial assistance in advance.
3. Keep records safe. Print and keep a copy of your 2015 tax return and supporting records together in a safe place. This includes W-2 Forms, Forms 1099, bank records and records of your family’s health care insurance coverage. If you ever need your tax return or records, it will be easier 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 for college. You should use your 2015 tax return as a guide when you do your 2016 taxes next year.
4. Stay organized. Make tax time easier on everyone by having your family place tax records in the same place during the year. That way you won’t have to search for misplaced records when you file your return next year.
5. Consider itemizing. You may be able to lower your taxes if you itemize deductions instead of taking the standard deduction. Owning a home, paying medical expenses and qualified donations to charity could mean more tax savings. The IRS has not published the 2016 forms yet, but you can refer to the 2015 forms at www.irs.gov for a list of deductions which are found in the instructions for Schedule A, Itemized Deductions. If you did itemize in 2015, use your 2015 Schedule A as a guide.
Ready to save money on your taxes?
Planning now can pay off with savings at tax time next year.
Call us today and get a jump start on next year’s taxes.
If you have any questions about this topic or other tax related questions, please do not hesitate to contact us at 727-327-1999.
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER, OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
