There is still time left in the year to make tax effective moves to maximize your financial situation. Starting now will allow you to identify any financial opportunities, organize documents, and take necessary steps to make a noticeable difference for your tax return this coming January.
File your return
The deadline may have passed to file on time, but if you have not filed your return yet, the deadline for extension filers is Oct 15. The longer you wait, the more penalties and interest that accrues.
Adjust your withholding
Some people purposely undershoot their withholding to get a larger refund. This practice robs you of the opportunity to set aside that money in an interest-bearing account. The ideal payroll withholding situation is to have just enough withheld from your paychecks to come out as close to breaking even at tax time.
While you are organizing your documents for tax season, do some fall cleaning to your household. Find any unwanted household items and take them to your local qualifying charity as a donation. Find out what the items are worth and save those receipts for tax time.
Child and dependent care credit
Make sure you have all of your summer and daycare camp receipts. You can count the costs toward your child care credit claim.