It’s Time to Start Preparing for Your 2017 Taxes

Shot,Of,An,Attractive,Mature,Businesswoman,Working,On,Laptop,In

 

The tax season is officially over for most people, and by now many taxpayers have already put their refund to good use. However, while almost everyone would rather not think about taxes for the next 10 months, or so, the fact is, this is a good time to start looking at next year’s taxes. In fact, by taking a close look at this year’s return, you can learn some important things for next year.

So here are some things to pay attention to. First off, did you get a large refund, or did you end up owing the IRS money? Chances are, one way or the other you need to take a look at your W-4. If you get a big refund then you are probably having too much withheld. On the other hand, if you still owed the IRS money then you are not having enough withheld.

Your 401k is another thing to revisit. Are you maxing it out? If not, then you are missing out on some extra tax savings. Of course, if you need that money now then you can only set aside so much. However, if you can afford to put more away for later, then you should definitely take full advantage of it.

Another good thing to start planning for right now is your list of deductions. Start tracking your receipts and keeping an accurate record. This will help you when you try to figure out your itemized deductions next year.

Lastly, if you like to make charitable donations then you could use your IRA to make those contributions. You get to help a good cause and the contribution won’t hurt your adjusted gross income.

http://www.cnbc.com/2017/04/07/ignore-these-2016-tax-lessons-at-your-peril.html

/GROCO
Posted in

How Can the Wealthy Cut Taxes on Their Social Security Benefits?

Everyone works a lifetime with the idea that at some point they can retire and collect Social Security benefits throughout their so-called “golden years.” However, when it comes to Social Security, this year is not a good time to be a high-income earner. Medicare Part B Premiums are expected to rise for high-income retirees. So,…

Mansion Ends Up Getting Owner in Hot Water for Tax Evasion

Is it possible to hide anything from the IRS? Even when you think you’re safe, it appears the IRS has an eye in the sky. That eye seems to be all reaching, at least in Pennsylvania. A wealthy real estate developer and CEO of Automated Health Systems owns a luxurious 32,400 square-foot mansion that apparently…

Why Are Your Property Taxes So Darn High?

While the majority of people pay the most attention to the taxes they see regularly, i.e. income and sales tax, there are other taxes that cost you a lot of money that you may tend to forget about. One of those taxes that cost a lot, but that kind of goes unnoticed is property tax.…

IRS Is a Lot More Open to Compromise These Days

It used to be that if you owed a large debt to the IRS you didn’t have a great chance of catching a break. Even though the IRS has always been able to compromise, at least a little, the tax agency has never been really eager to do so. Some people might not even be…