Summertime Tax Tips!
It’s summertime and probably the last thing you want to think about is taxes! However, I am an organizer and I like to be prepared so at least I feel like I am ahead of the game…. Here are some easy and simple summer tax tips that will help you save money! Most people wait until December to start thinking about their taxes, but in actuality planning half way through the year is a better tax planning strategy.
First Things First
Have you filed your 2012 Tax Return (remember to file and take care of your taxes so back taxes do not incur)? If you were given an extension in April DO NOT procrastinate any longer. Finish your taxes NOW! If you wait until the last minute to meet the October 15th extension deadline, your return will be sloppy and rushed (the same thing goes for last minute April returns). You do not want to forget any tax deductions or make any filing errors.
Get Organized
I realize that now is the time to be outside in the sun. However, just take a couple minutes and organize your 2012 tax filing materials. Now go ahead and do the same thing for your 2013 taxes. It will make filing next year’s return seem painless!
It is very important that you keep some type of system for filing and organizing your tax information. It can be a desk drawer in your home office, an accordion file or a very large filing cabinet…. The important thing to remember is to choose something that works for you and stick with it. The system should make everything easy to find. Nice labels for things such as charitable deductions, medical bills, business expenses, etc. are recommended. Just remember to keep everything in place!
Keep Day Camp Receipts
If you have young children like I do, this tip is important! The IRS allows parents to claim a child’s day camp expenses the same way that they can claim the Child and Dependent Care Credit to help cover the day care costs for children while they are working. Many people do not realize this or forget to claim summer day camps. It is important to note that overnight camps do not qualify, only day camps.
Assess Your Estimated Taxes
Estimated tax payments are needed if you have income that isn’t subject to withholding. The IRS wants to know that you going to pay taxes on all of your income. To avoid a tax penalty, it is critical that you do not underpay your taxes. Summer is great time to recalculate your estimated tax situation in order to keep on track so there are no surprises!
If you have tax questions or tax debt you are unable to pay, our tax settlement professionals are happy to discuss your tax resolution options free of charge. For more information about our services, visit us today at www.professionaltaxresolution.com or call us at 877.889.6527. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances