Tax Planning

Start Planning For Next Year’s Taxes Now With These Tips

Start Planning For Next Year’s Taxes Now With These Tips

Even though tax season isn’t quite over this year, it’s never too early to start planning for 2024. The better educated you are and the more you prepare, the easier tax time will be.

Get ready for the smoothest tax year of your life with these tips.

Take action when you hit life milestones - Sometimes, life changes and milestones can impact the amount of taxes you need to pay. If, for example, your family gains a new biological or adopted child, you may want to alter the amount of money your employer withholds from your paycheck. To do that, file a new Form W-4. Your HR department or your tax preparer can help you.

Organize your records - If you are married or have children of working age who still live in your home, it’s smart to establish a single location where all tax-related documents are kept. This could be a physical filing cabinet or even an online dropbox. Among the documents you should file are prior years’ tax returns, receipts (especially if you itemize), Forms W-2, Forms 1099, bank statements, and proof of health insurance coverage. Setting up this system now is a great way to ensure you aren’t rushing around to find necessary paperwork when 2024 rolls around.

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Find the right tax preparer - Choosing your tax preparer wisely is one of the most important parts of having a stress-free tax year. If you are looking for a new tax professional in your area, there are a number of resources available to you including TaxBuzz and the IRS Directory of Tax Preparers. Make sure you select a reputable expert who has the credentials or niche you desire.

Consider itemizing - Many American taxpayers – especially those who fill out their own tax forms – take the standard deduction without giving much thought to the possibility of itemizing. However, owning a home, paying medical bills, and having a home office can all help reduce tax liability if you itemize. Charitable donations and educational expenses can lead to additional tax savings. View the IRS’s official instructions for Schedule A, Itemized Deductions, for a list of eligible deductio

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Staying informed about changes to the tax code throughout the year is also helpful for taxpayers who want to reduce their tax burden. As with any topic, the more you learn about taxes, the more comfortable you will feel.

Are you already thinking about 2024 taxes?

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Spencer Wilson

Spencer Wilson

Spencer Wilson, EA is a tax preparer based in Long Beach, CA. Spencer Wilson Financial Management Services has been serving the Greater Los Angeles Area and Orange County since 2004. <br /> We began in the heart of Naples in Long Beach and we continue to work hard offering tax preparation and planning, business accounting and bookkeeping and payroll services . <br /> We have helped many different people and businesses succeed financially and take control over their finances.

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