Tax season is over so you’re all done until next year, right? Not quite. It’s time to strategize about next year’s tax bill. If you are one in the higher income bracket and you want to decrease your tax bill next year, pay more throughout this year to lessen the bill later. Check out your contributions to your retirement plan, the number of dependents you have on your paycheck, and the amount of tax that is coming out of each check. It may be a good idea to increase your charitable contributions also.
If you are not in the upper income brackets, or know that you will be entitled to certain valuable deductions and credits next tax season, you may want to keep more of your paycheck in your pocket for cash flow purposes. Increase your dependents on your W-4, start school if you are not already attending, start a business, or look into other ways to either increase your income, or lower your monthly expenses.
Contact me for a free consultation. We will discuss your individual needs and see how to strategically put you in charge of what you will owe the IRS next year, instead of vice versa.