Start Planning Now for 2012’s Tax Return

I know tax season just ended and the last thing you want to do is start thinking about taxes again, but if you start now, this will save you time and headaches in 2013 when you are trying to get things ready for your 2012 tax return. Here are 8 things you can do now to make 4/15 a little easier:

1. Adjust your withholding: Now is a good time to review your withholding and make adjustment for next year. If you owed at tax time and want next year’s tax payment to be smaller, call us so we can get that adjusted for you.

2. Store your return in a safe place: Put your 2011 tax return and supporting documents somewhere secure so you’ll know exactly where to find them. Although we have your back if misplace your return 🙂

3. Organize your recordkeeping: Establish a central location where everyone in your household can put tax-related records all year long.

4. Review your paycheck: Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle.

5. Come to us early: If you use a CPA to help you strategize, plan and make financial decisions throughout the year, you’ll know what to expect when your taxes come due in April.

6. Prepare to itemize deductions: If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions in 2012 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings.

7. Strategize tuition payments: The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires.

8. Keep up with the changes: Found out about tax law changes. Make sure you follow us on facebook, twitter and of course wordpress to keep up on all the new changes and helpful tips. Also check out our website at http://www.MCcpas.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: