As the year comes to a close, you should start organizing your tax information so it will be easier to file your taxes in April. Whether you are filing as an individual or as part of a family, early preparation can help you lower the amount that you owe. Use the following tips to take control of your year-end taxes to simplify the act of filing during tax season.
Go Over Your Withholdings
The amount that the government takes out of each paycheck directly affects whether you will have to pay more at tax time or if the government will have to pay you. Go over your tax paperwork to make sure you are happy with your withholdings. If not, you can make changes before tax season.
Consolidate Your Debt
If you have debt spread out over a variety of credit cards, you are paying too much in interest and missing out on some potential tax deductions. If you consolidate your debt with a tax-deductible home equity loan, you could significantly lower your interest payments and get some money off of your taxes.
Pay Your Property Taxes Early
If you are a homeowner, you can prepay on your property taxes and take a deduction when you file in 2015. Make your February property tax payment by December 31 so you can take advantage of this deduction for your 2014 taxes.
Ask for a Later Bonus
If your company offers end-of-the-year bonuses, you might want to ask your employer to hold onto yours until January. This way you do not have to include it in your 2014 taxes.
If you need help preparing or filing your taxes, the financial advisors at Financial Directions, LLC are here to help. From tax help to information about retirement planning, we want you to have more control over your financial situation. To learn more about our services or to talk to one of our advisors, visit us online or call (520) 408-7777.
