Get Your Ducks In A Row for the 2017 Tax Season
As fall approaches, we look forward to the holidays. After the thanksgiving turkey and Christmas ham has been eaten, we savor to the potential of spring, only to be reminded that the 2017 income tax filing season will soon be upon us. For many people, the act of filing their income tax returns creates meaningful disruption and anxiety. Here are some planning tips to help you get your ducks in a row.
- Summarize your business income and expenditures; gather your receipts in sustain of your expenditures. If you start now, the time of action will be less stressful and the risk of omitting one or more tax-deductible expenditure, decreases considerably.
- Summarize your cash and non-cash charitable contributions.
- If you have investment locaiongs with continuous losses, consider the tax effectiveness of harvesting those losses before the end of 2016.
- Document any changes to your financial scenery during 2016. For example, the assumption of business debt, buy of new business assets, buy of a new home, sale of investments or other assets etc.
- Consider your need for specialized income tax sets. If necessary retain a tax attorney, and or income tax specialized depending on your situation.
- Schedule a tax planning appointment with your tax specialized. A tax planning consultation produces strategies that specifically address your circumstances. With three months left in the year, there is just enough time to implement the tax planning advice and minimize your tax liability.
- If possible, increase your retirement contributions. This will help to grow your nest egg and reduce your taxable income.
- Make an additional regular payment on your mortgage; this will help you pay down your mortgage, decline your interest expense in the long-term and reduce your taxes in the short-term. However, it is important that your mortgage provider that the payment is not intended as additional principal. Making an additional principal payment will accomplish the long-term interest reduction but the tax assistance will be lost.
- Clean out your closet and make charitable donations. Charitable contributions are tax deductible and, more importantly, these donations help organizations like Goodwill to create jobs for people with disabilities.
- Although flexible spending accounts now have a carryover characterize, make arrangements to use any excess balances on these accounts.
- If you have not done so already, make any estimated tax payment due. Failure to make estimated tax payments may consequence in penalties and could leave you facing a much larger tax bill on April 15.