For a lot of people, April 15th is a day filled with more fear and anxiety than Friday the 13th, April fool’s Day and Halloween combined. When you know a big tax bill is coming it is difficult to think about anything else. Our taxes go towards paying for all sorts of goods and services, but when it comes down to it, there are not many out there who are happy to fork over money in the springtime. Unfortunately, when those tax bills do come, they are often pretty hefty.
Everyone has to pay taxes, but how you pay your taxes might make a pretty big difference in how financially stable you feel, as well as how high your anxiety level will get come April. Planning ahead for tax season can turn the process of filing your taxes into an entirely new experience. Play your cards right and you may even find a tax refund at the end of that tunnel.
Tips on Planning Ahead for Tax Season
Tax season is not something that should surprise you! It comes around the same time, every year. The problem that many people face is that they don’t start thinking about tax expenses until the springtime. At this point, it is too late to make most smart money saving tax moves,.
Here are a few tips as to what you can do now to plan ahead for tax season:
- Adjust your paycheck withholdings to increase how much you are paying on a biweekly basis. This will reduce how much you will potentially owe at the end of the year, and could result in a tax refund. There is no reason to fear overpaying your taxes as long as you have a good accountant to help you come April.
- Increase your 401K contributions, as these are tax-free. This can provide some minor adjustments to your taxable income, which could mean the difference between a tax refund and a tax bill.
Finally, get in touch with an accountant early on. Too many people wait to consult with an accountant until it is too late. Stay in touch with an accountant early on to stay on top of your tax responsibilities. A good accountant can help guide your spending and earning practices to put you in the best shape, and will prevent a large bill from showing up at the end of the year. Contact MBS Accountancy for more information about partnering with an accountant for your personal taxpaying needs.