Every April of the year is the income tax deadline looms. Here are tips on how to tackle
your tax season with confidence!
1. Know the new laws about tax.
Sometimes, they make a major change on the tax laws and those changes will be
applied this 2018. It is a good idea to familiarize yourself on the impacts of these
changes to you taxes. You will likely see changes in your paycheck that started last
February.
2. Get organized.
Some employees just wait the last minute to process their taxes. You would want to
keep all the receipts and relevant documents you have throughout the year before the tax season. Make sure the information you have matches all your paystubs. Then find
your last year’s return tax, real estate documentation, or even your proof of charitable donations during the year. Receipts for business, as well as medical or education
expenses are something to consider.
3. Honesty.
Be honest when filling out your taxes. It might be tempting to fudge the numbers but it is not worth the risk. You will be liable to what you reported if you’re audited. Stay on the
safe side.
4. Filing status.
This section can be easy if you are filing single and have no children or dependents and only one job. You just have to check with your accountant and see if you can claim head of household status. Filing status also changes if you are married or filing jointly.
5. Retirement.
Investors may also want to consider the allocations for their retirement savings plan.
You also might want to look into your 401-K or other employer contributions and how
that affects your taxable income.
6. Decide what to itemize.
Individuals who have higher incomes typically itemize deductions to lower what they owe and to get some of these expenses refunded.
Check with your accountant if you can lower your tax burden by deducting expenses.
● State and local taxes
● Medical expenses
● Charitable contributions
● Health insurance
● Mortgage interest
● Losses to your home or business because of natural disasters
7. Know when to file your taxes this in 2018.
Knowing the due day of your returns is the most important. However, if for instance you
are a business owner or you are self-employed, you may be required to pay your taxes on a quarterly basis. The returns are due by the 15th of the month that ends every
quarter.
Tax Changes You Need To Know In 2018
Check for these changes and the limits for each item with your accountant.
● Personal Exemption
● Standard Deductions
● Child Tax Credit
● State and Local Taxes
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