Tax Season is here
 

The best way to get through tax season is to prepare for it a year in advance.


Hey most of us do not want to have to owe the government anything in the way of last years taxes. To do that, there are several things you need to think about.


1. Do you have self employment income, variable income, think commissions or bonuses.? Have a tax accountant to talk with during the year. Especially if your income is up first or second quarter or you got a very large commission.


2. Consider being taxed at the single rate instead of the married rate - if you are married.


3. Contribute to Tax free accounts like your 401 Ks. Find out what else might be available to you. Contribute even $20 a month and that might slipyou down into another lower tax rate.


4.Any unusual income or expense - document it and keep the documents If it is big enough say $5K or more call your tax accountant.


5. Own a house? - interest expense on the mortgage - repairs n maintenance capital repairs etc can be deductible.


6. Take advantage of any tax free savings programs.


7. Self employed? If you have a business determine what your carry forward/back provisions are with your tax accountant. But remember it is your feeling about your business if you are going to make more next year or not. And it might be worthwhile to minimize your tax burden this year, and not next year.


8. Medical Expenses - keep all your medical receipts - even if you have some coverage at work . Usually the difference can be claimed on a tax return.


Anyhow some ideas from a former CGA

Thanks for posting this...I gotta get my butt in gear w/ taxes!