Simple Tax Tips
Simple Tips to Help Plan for Next Tax Season Now
April 15th is long gone! Did your taxes go smoothly? Did you get the refund you expected or did you owe more than you thought you would?
Believe it or not, your 2015 taxes – the ones you file in 2016 – are already underway. It is not too late to make some adjustments to help make sure that next april 15th goes as expected. While you will not be filing today, what you do now throughout 2015 matters.
Here are six simple tips to help you get your tax feet wet for next tax season and ensure you get your biggest tax refund next year.
Tips for Tax Year 2015:
- Stay Organized. Now that you filed your taxes, make it easy on yourself for next year and stay organized. Start a folder of important documents and financial records for today, which will help give you a jump-start come tax time next year.
- Consider reviewing your W-4 withholding. Did you get a large tax refund this year? You may want to think about adjusting your withholding. Withholding is the tax your employer takes from your pay each check. To update them, simply re-file your W-4 form with your payroll department. You can choose to update it whenever you want to throughout the year and there are several online W-4 calculators to help you estimate your exemptions.
- Make charitable donations before the end of the year. Contributing to charity or donating goods can reduce your tax liability when you file your taxes next year. Make sure that you keep track and value your charitable giving or donated items throughout the year.
Lower taxable income by contributing to your retirement funds. Reduce your potential tax burden for next year by starting to plan for your future retirement. If you contribute to a 401(K) or a Traditional IRA, you will be able to take a dollar for dollar reduction in your income for your taxes. In 2015, you may contribute up to $18,000 ($24,000 if you’re 50 or older) to your 401K and $5,500 ($6,500 50 and older) to your traditional IRA.
- Sign-up for healthcare if you paid a tax penalty for 2014. If you had to pay a tax penalty for not having health insurance in 2014, you should sign up for a Marketplace plan unless you experience a special life event.
- Update financial information in the Health Insurance Marketplace. If you bought Marketplace insurance during this past Open Enrollment and received a tax credit to help pay for coverage, don’t forget to update your financial information in the Marketplace throughout the year. This will ensure you’re getting as much help as you’re eligible for and also help you avoid having to pay back any extra tax credits (for which you’re not eligible) next year.
- Be clear on the laws and if you have any questions feel free to contact me at 310-276-3550 or Robert@roberthousman.com
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