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Individual Tax

Tax Considerations

By May 28, 2011No Comments

With Tax season over many people feel they can breathe a sigh of relief, with the premise that they have a whole year to until they have to worry about tax time again.   Here’s a few pointers to ensure that next year tax filing become a little less “taxing”.

  1. Get organized. Make sure to place your 2010 tax return in an easily accessible place; a tax file in your file cabinet or a scanned copy of your return saved to your hard drive. Make sure that any other pertinent documents are also placed in the file, so they are easily accessible come tax time.
  2. Keep better records. If you felt disorganized this year, evaluate what it was that made you feel this way. Did you have a record keeping strategy? Were all your receipts organized or a hodgepodge of random pieces of paper? Consider a new filing system, or financial software to keep you organized and prepared for the next tax season; putting all your documentation at your fingertips.
  3. Look for a tax professional now. Why wait for crunch time to find a good tax professional? Now, when everything is settled down is the most opportune time to start looking for a tax professional that is going to be the best fit for you. Take the time to meet with a few different potential possibilities while there is no rush.
  4. Discuss different options with your financial advisor. Take the time to sit down and discuss any changes that may make this next year a smoother tax season. What losses and gains did you take advantage of this year? Did you miss something that would have been a great benefit for you? What investments could be advantages for you this coming year? Take the time to set up a good financial strategy for the year.
  5. Consider any major life decisions and the impact on your taxes. Are you getting married, expecting a child? What about buying a house or another property? Maybe starting a new business? These decisions can definitely have an impact on your federal income taxes. Take the time to discuss these changes with your tax professional.
  6. Keep positive. Maybe you felt discouraged this tax season, overwhelmed, and/or unprepared, but don’t be discouraged, you have a fresh start before the next tax season. Take the time to make some changes now, so that you are prepared for the coming year, start now and you will have a smooth tax season.
  7. Breathe.