Carpe Diem!

Now that tax season is behind us, there is no better time to do some spring cleaning and make sure you  will have everything you’ll need for next year. Taxes can be confusing, and indeed intimidating to many people, and it is understandable to want to forget the whole process. Don’t! Not paying attention can have the unfortunate result of leaving you vulnerable to mistakes being made on their tax forms. 

 For example, it is not uncommon for a household to owe money to the IRS because of a mistake or outdated information about how much income should be withheld from a paycheck for federal income taxes. There is no better time than right now to get a more complete understanding of how  various types of income are taxed, and how that will affect your return in the future. 

Here are a few “spring cleaning” steps you can take to make filing next year’s taxes as stress-free as possible:

-         Check to see if your W-4 filed with your employer needs to be updated. If you owed money at tax time, or had a life change such as a marriage, divorce, new family member, or employment change, you will likely want to adjust your withholding. Employers and human resource departments are great resources for learning about your W-4. It’s a good idea to make a habit of checking this every year.  

-         Contact your bank, employer, or the distribution source of any retirement or pension plans to shed some light on the sometimes murky details surrounding your IRA and 401Ks so that you don’t have any surprises waiting for you when you file your 1099-Rs next year and to ensure that you are not being taxed at a higher rate than you should be. 

-         Keep your tax information somewhere safe for next year!  By bringing your previous year’s tax information (along with your login name and password) into your appointment you will ensure accuracy on your taxes and make your tax appointment go faster.

So seize the day, and take this opportunity to spot any issues before they become a problem!