Some Tax Moves To Make Before Summer Ends: Performing A 6 Month Check Up

Planning for income taxes in the middle of the summer, or while on vacation is not on the top of anyone’s to-do list. But, doing so can save you a lot of headache and work in the new year. Just like you go to the dentist every 6 months, or change the oil in your car as recommended, performing a tax checkup mid-year can help prevent a problem down the road. Aside from identifying areas where you can take steps to minimize next years’ taxes, performing a 6 month tax checkup can also reveal areas in your finances where you can make changes for the better.

The following tax moves are ones you can take now, and the payoff will be a less complex filing process next year, and you may even save some money:

• Change your withholding status: if you wound up paying Uncle Sam more in taxes after having filed, you may want to look at how much is being held out of your paycheck each pay day. Owing taxes is an indication that not enough is being withheld, and a simple adjustment can usually take care of the problem. Doing so will mean less money in your pocket when you get paid, but at least you won’t feel the pinch all at once and have to write a check to the IRS in April.
• Review your family status: if you got married or had a child this year, you will want to make changes to the way you file your taxes. For married persons, the choice to file jointly or as a married couple who files separately should be made. In some cases it is more beneficial to file separately, but it is not always a permissible option for married couples. Taking a look at this issue now will put you one step ahead when it comes time to file your return.
• Take a look at where your money is going: you can reduce your tax liability by increasing charitable contributions or by putting money put into a college education savings plan. If you are close to the line of owing versus not owing, review how you are spending your money and make adjustments now.

Organizing your documents for tax time while trying to plan a vacation or get your kids ready for back to school may seem like a burdensome task, but if you take the time now to get ready, you can save yourself a lot of hard work later. If you have questions about what to do to perform a 6 month checkup of your tax situation, call a legal tax professional for answers.

Let the professionals at Nielsen Law Group help you make sure you take the steps now that will help you later with your income taxes. Call (480) 888-7111 or submit a web request here.