When should I start thinking about my next year’s taxes?
What?! Wait! Tax season is over, why would I want to think about next year’s taxes already?
We as individuals file one tax return a year, but taxes affect us each and every day, 365 days to be exact. So, what can you do to make things a bit less stressful throughout the year?1st- Make sure that you having the proper amount of allowances taken from your check. Claiming more allowances, your paycheck will be larger, but your tax refund check will be smaller or you could be faced with owing taxes at the end of the year. Contact us if you’re confused with what to do or inquire with your company’s Human Resource department if you’re not sure how many allowances you’re claiming now. You chose your allowances on the W-4 form you filled out when you started your job, but you can change it at any time by submitting a new W-4 form to your employer. 2nd- If you’re self-employed or own a business, keep a folder with your receipts and all paperwork related to your deductions so you have them all in one place when it’s time to file your taxes next year. If you don’t like the idea of hoarding paperwork, consider scanning all your receipts and tax documents into your computer so you have digital copies instead. To be safe, make sure to back them up so you don’t lose them.
Each and every year, the government modifies and tweaks the tax laws a bit. AGI (adjusted gross income) limitations often change slightly, as do the amounts and rules required for some tax deductions and credits. We don’t expect you to understand every single rule, although the government does, it’s a good idea to familiarize yourself with the key changes that could affect you in the coming year. For example, if you’re now on the bubble between two tax brackets, you may want to contribute more monies to a qualified tax-deferred retirement plan or accelerate some of your itemized deductions so that you stay well within the lower bracket. The result; more money in your pocket and not Uncle Sam’s.We can help with all your tax questions and tax needs.
We welcome you to come to sit down with us and let’s see how we can make your money work for you. From all of us here at Red Rock Tax & Consulting we hope you are Staying Safe, Staying Healthy, and remember…
Have any questions, give us a call here at Red Rock Tax & Consulting. We are here to help you get through the stress of taxes! We offer a free 30-minute consultation so call us and let’s get your appointment set up 435-635-2494
From all of us here at Red Rock Tax & Consulting we hope you have a spectacular day!
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