Fall is a time of renewal. We put our children on new schedules and get “tough” about bedtimes. However, this is also the time to make you Autumn Resolutions! Yup, this time of year is actually the best time of year for you to start a new habit or get a “fresh start” says Brooke Randolf from Shape.
So why not resolve to get your financial affairs in order and increase your bottom line? Here are just a few things you can do NOW to reduce your tax liability and improve your financial health.
- 1. Boost your Retirement – Contributing to a retirement fund can not only give you peace of mind when it comes to retirement, but it can also lower your tax bill. Increasing your pretax contributions to a 401K, IRA or other retirement plans now can reduce your “taxable income” thus decreasing the overall amount of tax you pay come January! If you are self-employed and don’t have a retirement account – now is the time to start! Tarm Tax Services, Inc. and help you set up a retirement fund and determine the proper amount to contribute.
- 2. Avoid the Penalties – If you expect to owe money when you file your taxes don’t wait till January or even April to pay. Increasing your withholdings on your last few paychecks rather than paying with your tax return is a great way to avoid or reduce an underpayment penalty. Self-employed? You’ll need to make estimated payments. We can help you determine the amount you should be paying each quarter!
- 3. Plan Ahead – Will your income decrease next year? If so you may want to increase your itemized deduction this year to take advantage of the situation. Make your January mortgage payment in December to increase your Mortgage interest deduction, make an additional estimated tax payment to the state to increase your deduction for state taxes, Give early! Contribute next year’s charitable contributions before the end of the year.
- 4. Consider a checkup – It’s important to consider your tax situation before it becomes a “situation.” Set up an appointment to review your income and deductions now to avoid the “April Surprise!”