The Daily Deduction

Keep Good Records Now to Reduce Tax-Time Stress

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Tax season is roughly about six months away. That’s plenty of time to get your financial documents in order so you can avoid any hassle during the tax season. Here are a few tips to help you stay on top of your taxes all summer long:

Adjust your withholding. Electing to withhold more taxes from your pay than required will rob you of the chance to put that money away in an interest-bearing account throughout the year. Review your withholding now to make the taxes you’ll owe for this year. If you owed tax when you filed, you may need to increase the federal income tax withheld from your wages.

Keep your 2012 record in a safe place.  Put all of your 2012 tax documents somewhere safe. Back them up electronically and across multiple hard drives to ensure that you have a copy handy if you ever need it. Your 2012 return may help you next year during tax season or you may need to find it when you apply for your next home.

Organize your records.  Simply put: Place all tax documents for the year in one designated location. This includes mileage logs, unreimbursed expenses, charity receipts, business expense receipts, and more.

Consider itemizing deductions.  Do you and your family usually claim a standard deduction? Check to see if it is more beneficial to itemize deductions instead. If your itemized deductions typically fall just below your standard deduction, you can ‘bundle’ your deductions. Planning an approach now that works best for you can pay off at tax time next year.

Talk to a Liberty Tax Service Professional.  New to the Liberty Tax Service network of professionals? Did you move? Have you been seeing the same tax preparer for years and just have a simple question? Find your local office and call to make an appointment.  

Keep up with changes. Keep an eye on the eSmart Tax blog or the Liberty Tax Service Tax Lounge for changes in tax law, tax code, forms updates, and more.

Posted To: The Daily Deduction By: Lauryn on 7/18/2013 01:20:00 AM
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