SOUTHFIELD, Mich. — It may feel like you just filed your 2014 tax returns and the last thing you want to do is worry about taxes again, but taking a few steps now could save a lot of time and money next year.
“All you have to do is put down your golf club for just a few short moments or put a rainy day to good use and look over these mid-year tax tips to ensure you’re doing everything you can to save time and money,” said Venar Ayar of Ayar Law Group. “After completing these tasks, you’ll be able to enjoy the rest of your summer knowing that you’ve taken the right steps to prepare for the 2015 tax season.”
First and foremost, if you filed an extension in April, you should finish your taxes now and not wait until October to file. You will not get another extension and scrambling to finish your taxes is a surefire way to make grievous errors. Also, many taxpayers file for extensions, so if you go to a tax preparer with your documents in October, you may be turned away due to the high volume of clients they receive.
Taxpayers should also check and adjust their withholding rate. If you received a large refund and your work and tax circumstances remain relatively similar, you should adjust your withholding rate. This will ensure that you will not receive a large refund next year, allowing you to have full control over your money for a year. Ideally, you want to have just enough – not too much and not too little – withheld from each paycheck to meet your annual tax bill.
Taxpayers should evaluate their estimated taxes, including tax payments that are required if their income isn’t subject to withholding. By making the four extra tax payments each year, you’ll help ensure you don’t underpay your taxes. This is important because you could face tax penalties if you owe too much when it’s time to file.
Parents should keep track of day camp receipts during the summer, which can be claimed under the child and dependent care credit on tax returns. This only applies to day camps, though, overnight camps do not qualify.
One of the most important tax tips is to be organized. Taxpayers shouldn’t wait until next year to search for receipts and documents, and organize their documents from the first half of the year now. This can be accomplished by starting a filing system. A little bit of organization now can save a lot of work and time later.
Taxpayers should also organize everything from their 2014 tax returns and keep them in a safe place in case they’re ever contacted by the IRS. Technology is a wonderful tool and should be used to back up documents via email, thumb drives, the cloud, a server or a free service such as Microsoft OneNote.
These are just a few tips that can be utilized now to help prepare for next year’s tax season. Nobody likes tax season but it’s an inevitable constant that is best to be prepared for, and it’s never too early to start thinking about your tax returns.
About The Ayar Law Group
The Ayar Law Group specializes in helping individuals and businesses solve their tax problems. Our Michigan tax attorneys serve all of metro Detroit and the greater Southeastern Michigan area. Our narrowly-focused tax resolution practice gives us the specialized knowledge and experience we need to fully understand the nature of, and best possible solutions to, each and every individual and business tax problem. www.ayarlawgroup.com
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