While most tax reduction tips are utilized prior to January 1st, if the New Year has come and gone, that doesn’t mean that your tax bill is set in stone. There are still some things that you can do to lower your taxes, save money when preparing your tax return, and avoid tax penalties.
Here are some tax tips that individuals can utilize after January 1st that may help lower your taxes and potentially save on tax preparation. Let’s get into it.
#1. File And Pay On Time
Or file an extension on time if you need a bit more time to get your things in order. It may seem like a no-brainer, but by filing your tax return by the deadline and paying anything you may owe, you can avoid penalties and fines, which keeps you from spending more than you otherwise would.
#2. Organize Your Records
One of the biggest hassles people face come tax season is getting all of their documentation in order. Organizing your records makes when it comes time to file easier. This includes things like your tax-related documents, such as W-2s and 1099s, prices paid for stocks or funds you sold, details on income from rental properties, and more.
#3. Itemize Your Tax Deductions
In some cases, the standard deduction will be more than your itemized deductions – but not always. Many people find it easier to just take the standard deduction, but itemizing your deductions can be worth it if your qualified expenses add up to more than that.
Many such deductions are well-known, such as for mortgage interest, charitable donations, and medical expenses that exceed a certain percentage of your adjusted gross income. A CPA can help you find all deductions you quality for, including ones you may not have been aware of.
#4. Contribute To Retirement Accounts
Contributing to your retirement accounts by the tax return filing due date can help to lower your tax bill. You can contribute to an IRA all the way up until Tax Day, and still deduct the eligible amount from your taxable income from the previous year.
It’s important to work with a tax professional in order to ensure that all qualifications are met, as there are factors that affect eligibility for this. The amount you save for making contributions also varies depending on contributions, tax bracket, and number of years the money has been invested.
#5. Hire A CPA
The best tax tip that you can utilize, regardless of the time of the year, is to hire a CPA to help you with your taxes. Taxes can be very complicated, and tax law is ever-changing. Many individuals worry about doing their taxes wrong and getting into trouble with the IRS.
When you hire a CPA to help you with your taxes, you can rest assured that you’re working with an experienced professional who stays on top of any and all tax changes. That way, you can know your taxes are filed properly. While it’s true that you have to pay a CPA for their services, the peace of mind said services can bring is priceless.
Professional Tax Preparation For Individuals And Businesses
Golub, Senitt, Rosenberg & Co’s experienced CPAs provide the professional tax preparation services you need to preserve your peace of mind. Whether you’re an individual or you need help with your business’s taxes, rest assured that we’ll ensure the process is completely as smoothly as possible. By working with a CPA, you can relax knowing that your tax return will be accurate and compliant with any changes in tax law.
Contact us today to schedule a consultation. Whether you need tax help or assistance with another one of our CPA services, such as fractional CFO work or controllership, we look forward to hearing from you.
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