If you were like most Americans, you finished filing your taxes on April 15.
You may feel like you need a break from crunching numbers and the swirling deadlines in your head, but if you want to save money on taxes in 2015, then there is no time like the present to start working.
It is much easier to make better tax moves if you have the advantage of time. Here are some ways you can start:
Did your stress level increase as April 15 approached? It is hard to know what documents you will need to file, and where you have stashed your important documents, if you are down to the wire. Put a system in place before it is too late.
If you anticipate 2014 will be a lot like years past, you will know what to expect. Develop a methodology where you gather tax documents, in addition to receipts, that will help you claim deductions, such as business expenses and charitable gifts. If a system is in place, you will be organized and prepared when tax forms start arriving in the mail after the first of the year.
It is important to organize digital files and other information. Americans are increasingly receiving tax information digitally. Make sure you do not disclose sensitive information, such as bank accounts and social security numbers, through email. Do be sure to download and save any tax document or receipt you received electronically.
If you were pulling your hair out by the close of this tax season, then you may need the help of a tax professional. Many taxpayers will end up owing back taxes to Uncle Sam because they filed messy tax returns to the IRS. If you owe back taxes to the IRS, or you anticipate IRS debt in the future, it is best to contact a professional today.
A tax resolution attorney can help you organize your tax documents, and get your record clean with the IRS. Do not wait until April 15 to find someone to help you because most tax resolution professionals are deep into tax season and may have difficulty taking on new clients.
If you are one of the Americans who received a 2013 refund, you may want to think about getting your refund throughout the year for your 2014 return. You can achieve this by adjusting your payroll withholding. Discuss it with your employer to make sure you get the maximum benefit.
It is true that many people see the return as a great thing, but you are really only giving Uncle Sam an interest free loan, when you could be using the money on better things each month, like bills and purchases, and paying off any debt you have.
You can also adjust your withholding to have the money flow into an approved 401(k) plan. Furthermore, you can set up automatic payments to go into a personal savings account or even your checking account. That way your extra money is not going to Uncle Sam, it is going to benefit you throughout the year!