If April was a stressful month for you due to last-minute tax filing, then you’re likely glad it’s all over and done with. Did you learn anything from it? For some, 2015’s tax preparation was difficult due to new laws and new business and career ventures. If you were one of the many who had a tough time filing taxes, then it’s time to learn from past experiences. Learn how to prepare throughout the year to avoid the time and hassle that generally comes during tax season. Check out these three simple tips to get your finances in order for 2016’s tax season.
Get Your Real Withholding
Withholdings can be a tricky business. It’s almost impossible to have just the right amount of money taken from your check that will leave you with no balance on your tax return. Typically, people will owe small amounts or receive a refund from the IRS. It’s when too little money is taken out of your pay that problems can arise.
To avoid this complication, file a new Form W-4 with your employer. This form can adjust your withholdings so that you have more take-home pay throughout the year or have more money withheld if you have to pay penalties for previous years.
Be Aware of Valuable Tax Break Opportunities
We all know there are tax deductions and credits that you can claim to reduce your tax bill every year. Still, most of us wait until tax day to get our documentation together. If you wait an entire year to organize these documents, chances are you’ll have lost one or two along the way.
Digging through a year’s worth of receipts and other financial statements is too much of a hassle. Be aware of valuable tax break opportunities throughout the year so you can gather all of your documents and are ready to meet those requirements when tax season comes around.
Start planning for next year’s taxes now. Our McAllen CPAs are ready to put together your financial records to determine what your tax outlook will be come April of 2016. Don’t wait for the rush to start, contact us today to get a better idea of what you should be doing to prepare.