Tax Day Is Over. Now What?

April 26, 2019

You’ve just finished filing your taxes for the year. No matter if you owe money or are due a refund, you’ve made it. Now what? Encino Tax Advisors will tell you that your best bet is to start preparing for the next tax season. What’s the best way to go about doing that?

Plan Your Deductions

There may have been deductions you missed this year because of timing, or maybe you neglected to maximize eligible deductions. Either way, get a head start on deductions for next year. Specifically, you want to time your upcoming expenses so that you get as much as possible out of your deductions next year. Talk with Encino Tax Consultants about how to go about this the right way.

Make the Most of Your Retirement Fund Contributions

To reduce your next tax bill, do everything you can to max out your retirement fund contributions. If you have trouble with this, you can at least look into contributing whatever amount your employer will match.

Determine Whether You Need To Adjust Your Employee Withholdings

Any of the following are likely to require making a change to the W-4 form you filled out with your current employer when you first started:

• Getting married
• Getting divorced
• Starting/Growing your family
• Getting a second job

Some life changes have an impact on your taxes, and you may need to have more money withheld from your check to avoid owing money to the IRS come the next tax season.

Even if it’s your spouse who gets a new job, the change in income (whether it’s for the better or worse) impacts your tax bracket if you two file jointly. That means you may need to adjust your withholdings, even if you’ll have the same job.

In a sense, your taxes are never really done. For more insights, reach out to Los Angeles Tax Preparation services.