Off Season Tax Tips

offseason-tax-tips

Most of us have made it past tax time and are looking forward to the summer. Some of us are still gathering last minute tax items and trying to finish up before October. I thought I would share a few off season tax tips that can help prepare you for a profitable 2016 Tax Year.

Create your tax strategy

Summer is a great time to go over your budget. Figure out the timing of your end of year bills. Maybe you will start saving for your property taxes over the summer so you can pay them off in 2016 instead of the beginning of 2017. Do you have a 401k or like account that you want to make sure you maximize your contribution? Summer is a great time to run those numbers. Maybe there is room in the budget for some charitable donations. Do a little spring cleaning and find old items to donate to charity. Remember to get good receipts.

Review your portfolio

Make sure you are paying yourself and making your money work for you instead of against you. Have a meeting with your financial advisor and make sure your investments meet the appropriate risk factors; you may find this annual tune makes a big difference.

Look into HSA or like plans

With the new requirements on health insurance, you will hear many people complaining about the hike in premiums. It may be in your best interest to get a health savings account (HSA) for the tax benefits as well as the yearly savings on medical items too expensive to pay out of pocket.

Get organized

If you have a business and don’t already have Quickbooks, now is a great time to take a seminar and learn one of these accounting programs. Accounting software can provide a world of information on how your business is running and also make things easier on your accountant come tax time. If you are an individual taxpayer, start organizing your receipts and making sure you are keeping organized and appropriate records.

Don’t let summer pass you by without putting in some work on your finances. If you take a little time each day to be proactive, your tax season should be much easier and you may wind up with a nice refund.

1 reply
  1. Tobias Armstrong
    Tobias Armstrong says:

    I love the idea to set a tax strategy long before you have to worry about paying taxes. Summer seems like it would be a really good time to review your past year’s taxes and figure out what you can be doing better. I like how you brought up charitable donations. It seems like you may want to look into getting some help from an accountant if you need it, but in general, I thought this was some fantastic advice. Thanks for sharing!

    Reply

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