As the New Year begins, setting clear tax goals can help secure your financial future. Here’s how to get started:
1. Organize Your Financial Records
Gather all relevant documents:
- Income Records: W-2s, 1099s, and other income statements.
- Expense Receipts: Charitable donations, medical expenses, business expenses.
- Investment Documents: Dividends, interest, and capital gains.
2. Review Last Year’s Tax Return
Identify areas for improvement:
- Missed Deductions or Credits: Ensure you take advantage of all available deductions and credits.
- Taxable Income Surprises: Plan better for unexpected taxable income.
3. Set Specific Tax Goals
Examples of goals:
- Maximize Retirement Contributions: Contribute the maximum to 401(k)s or IRAs.
- Increase Charitable Contributions: Plan and record donations.
- Track Business Expenses: Keep accurate records if you’re self-employed.
4. Plan for Major Life Events
Consider the tax implications of:
- Marriage or Divorce: Changes in filing status and deductions.
- Having a Child: Additional tax credits and deductions.
- Buying or Selling Property: Capital gains or losses.
5. Schedule Regular Check-Ins
- Quarterly Reviews: Assess progress and make adjustments.
- Tax Planning Meetings: Meet with a tax professional quarterly throughout the year.
6. Consult a Tax Professional
A tax professional can:
- Identify Tax-Saving Opportunities: Uncover deductions and credits.
- Ensure Compliance: Meet all filing requirements and deadlines.
- Strategize: Develop a comprehensive tax plan.
Conclusion
Setting New Year’s tax goals can lead to significant benefits. By organizing your records, reviewing past returns, setting specific goals, planning for life events, scheduling check-ins, and consulting a tax professional, you can optimize your tax situation and achieve financial security. Start the year off right by taking control of your taxes.
Ready to achieve your tax goals? Schedule a consultation with us today.