Tax Season is Finished! What to Know for Next Year

Phew! Tax Season is over, but now is not the time to sit back and relax. There is next tax season to prepare for, and there are a few simple tasks that can help make next year easier and less stressful.

Stay Organized

It may be simple, but staying organized is critical to a stress-free tax season next year. Keep all tax documents and receipts in one place so they are easy to find. Label a folder with “Taxes 2013” and use it to keep all receipts and other documents in throughout the year. No one wants to play “Look and Find” in January and February. Save yourself time by taking the time to file it now. Label what the receipt was for, especially if it is for business purposes. If the receipt is for a charitable donation, list what was donated. Take the time to file it right away so it will not be lost.

Adjust Withholdings

Believe it or not, you should not be getting a large refund from the IRS each year. The goal is to break even or only have a few hundred in a refund. If you are receiving a large refund consider adjusting your W4, which can be re-filed with your employer, to have less taken out. This will mean an immediate increase in your gross income. That “extra” money could be added to you IRA or 401(k) savings. This will help you reduce you taxes and save for your future retirement at the same time.

If you had to pay in more money to the government, then consider increasing the amount taken out of your paycheck. You can figure this amount by using a tax calculator on the IRS website. This will help you figure out how much extra will need to be withheld from your paycheck so you will not have to pay in any extra, or at least not as much as before.

Remember it is important to start now. Procrastinating will not help make tax time any easier, and being prepared will make it less stressful for you. Stay organized and make your adjustments. This will put you on the right path to a better tax season next year.

Here at Crowley & Halloran CPA’s, our consultants would be happy to help you plan and manage your business budget. Click here to request a proposal.