Planning for Next Years Tax Return in 2014

Most people forget about taxes after filing. But there is no better time than the present to start planning all about taxes for the next year. It’s never too early to establish a system of organized record. Here are six tips from the IRS to help you plan for taxes this year:

 

Planning for Next Years Tax Return in 2014

  1. Take action when changes in your life . Some events in life, such as a change in marital status, birth of a child or buying a house can change the amount of tax you owe. When such events occur during the year, you may need to change the amount of taxes withheld from your pay. To do so, you must file a new Form W-4   “Form for Withholding Allowance Certificate Employee” with your employer. Use the Withholding Calculator  on IRS.gov to help you complete the form. If you receive advance payments of the tax credit insurance premium, it is important to declare changes in circumstances, such as changes in income or family size, in Health Insurance Market.
  2. Save documents in a safe place . Keep your 2013 tax return and all attachments relevant in a safe place. This way if you ever need to refer to your statement, you will know where to find it.For example, you may need a copy of your return if you apply for a home loan or financial aid.You can also use it as a useful guide to the statement next year.
  3. Stay organized. sure your family keep tax records in the same place throughout the year. This will prevent a search for records that are out of place when tax season arrives next year.
  4. Find a Tax Preparer. Whether you want to hire a tax preparer to help you plan your taxes, now is the time to start the search. Choose wisely your tax professional. You are responsible for the information in your own statement regardless of who is preparing it. Find tips for choosing a trainer on IRS.gov.
  5. Consider itemize deductions. If you usually claim a standard deduction on your tax return, you could reduce your tax liability if you choose to itemize deductions . A charitable donation could save tax. See the instructions for Schedule-A  “Itemized deductions” to the list of expenses that can be deducted.
  6. Keep up with the changes. Subscribe to  IRS Tax Tips for emails about changes in tax laws, how to save money and more. You can also get advice on IRS.gov or IRS2Go, the mobile app from the IRS. The IRS gives advice on weekdays during tax season and three days a week in the summer.

Remember, a little planning can now pay in more than during tax season next year.

 

Additional Resources IRS on Filing Tax Return