With tax season rapidly approaching, it’s never been a better time to start planning for your 2014 taxes. While it may not seem possible, you can make the tax season much easier and cheaper. Here are a few tax tips that you may not have been aware of, but that will help you save on your 2014 taxes.
- Store Previous Tax Returns
Make sure to always store your previous returns, as well as your 2014 tax return, in a safe, easy to remember place. This not only makes it easy if you get contacted by the IRS later in the year for an audit or discrepancy, but it also ensures that you have a basic guideline for how to file next year’s taxes. - Make Adjustments to Your Federal Withholdings
In order to save big in the long run, you want to keep an eye on your federal withholdings. If you had to pay a huge sum of money at tax time last year, you may want to consider making quarterly payments throughout the year to reduce the amount you pay in during tax season. Alternatively, you can make adjustments to your withholdings to ensure a smaller tax payment come April 15. - Review Your Paychecks
Make sure that your employer is withholding the accurate amount and is properly reporting all deductions, payments and contributions. Believe it or not, this can all make a huge difference come tax season. The sooner you check into this, the better. - Keep Organized Records
Create a safe space in your home where all tax-related information and documents, including charity receipts and mileage logs, can be stored for all members of your household. Whether you want to use a shoebox that you keep in the top of your closest or a filing cabinet in your home office, make sure these documents are all in one place. This ensures that you don’t do a last-minute scramble trying to gather important documents that you need for your 2014 taxes. - Speak with a Tax Professional
While it is important to speak to a tax professional at any time of the year, the sooner you are able to do so the better it is for you in the long run. A tax professional can help you ensure that you have a solid tax plan and help you strategize and make important financial decisions that will prove to be best for you and your family. - Prepare Yourself for Itemized Deductions
If you fall just below the cut-off for itemizing your deductions, consider doing something throughout the year that will help you fall within that bracket. For example, you can make an extra payment on your mortgage, make planned donations or even make payments on your property taxes before the deadline.
If you need help with your 2014 taxes before the impending Phoenix tax season, please contact us at Phocus Companies so that can help you maximize your 2014 taxes with these tax tips and more based on your specific situation while keeping your goals in mind.
