Tax Planning Advice And Tips

Here is a bit of tax planning advice and tips for some quick and painless things you can do to make next year's tax time a little more pleasant.
  • Organize for next year - Whether you use simple file folders, expanding folders with pockets and tabs, a cardboard box or other filing system, the idea is to store what you need for your next year's tax return in a readily accessible place. What to do: take a look at all your income and deductions from this year's return. Gather and save receipts corresponding to all these items for the coming year.
  • Save tax records in a secure location - Sound tax planning advice always includes the recommendation that you save your tax records. Make sure it's a secure location, and keep them for at least three years. For more complicated returns, especially those involving unusual or large deductions, home purchases, etc., save them for seven years (or indefinitely).
  • Consider revising your tax withholding - If you find yourself paying too much during the year in withholding (or too little, resulting in more cash you owe the IRS at tax time), consider revising your tax withholding. The IRS website has a very useful calculator to help you figure out the withholding that's better for your situation. Yes, you'll have to make some educated guesses about your income and deductions for this coming year, but you will get a better handle on your withholding situation. Among the many tax planning advice and tips you'll find, this one can help you save money you need right now.