With the holidays swiftly approaching and the new year shortly following, now is the ideal time to prepare for tax season. As quickly as it arrived, the holiday season will soon pass. Then tax season will soon commence. With the right strategic planning and preparation, you can take a holiday from dreading next year’s Tax Day, and we are willing to help.
Back taxes can soar from lack of preparation and bookkeeping errors. Don’t let them overwhelm you. We help clients who owe money to the IRS resolve their debt efficiently, starting with a free consultation to explore tax resolution options. Here is our advice to help you prepare for tax season and give yourself the gift of relief from worries about past taxes.
Record Keeping
Begin to prepare for tax season by organizing your previous year’s tax returns and gathering recent pay stubs. Acquaint yourself with all the necessary information and have your paperwork readily accessible so you aren’t scrambling at the last minute.
Resolve Any Back Tax Debt
If you have any unfiled returns or previous years’ tax complications, let us help you resolve those as soon as possible. Tax professionals are submerged in returns close to Tax Day and are more likely to overlook case-specific solutions to solving your back tax debt during those busiest months. As year-round tax relief specialists, this is something Tax Resolution Group can directly assist you with. The sooner we get started resolving your tax debt, the less you’ll owe in penalties and interest.
Postpone Incentive Payments and Bonuses
If you’re looking to lower your taxable income, delaying incentive payments and bonuses is one of the simplest and most effective strategies. This applies to retirement account and IRA payments for present-year taxes, as well. We can help you prepare for tax season by talking through strategies like this to determine what will work best for you.
Maximize Deductions
Consider your qualifiable deductions.
Donating to tax-deductible charity organizations is a popular and reliable option. We can help you prepare for tax season by reviewing your budget and determining what size gift to make. Make sure you file receipts for any donations you make.
Education expenses also usually qualify for tax deductions or tax credits. If you or one of your dependents have post-secondary education expenses, we can help determine if they are deductible.
Increase Retirement Savings
Raising your 401(k) contributions and/or annual IRA investments may significantly increase your tax savings. Although performed prior to the New Year, this is one of the most cost-efficient strategies to prepare for tax season and maximize your savings.
Clean Up Stock and Crypto Portfolios
Selling losing stocks and cryptocurrencies can help lower tax expenses, should you have sizeable capital gains in your stock or crypto portfolios. Declaring these losses can directly counter financial gains responsible for high tax bills. If you need help determining whether to sell losing stocks to prepare for tax season, we can help.
Income Estimation
An accurate approximation of your income is essential to reducing back tax debt or eliminating it entirely. Having an idea of what your tax bill might look like come Tax Day will allow you to better access your options and strategize accordingly, without any crushing surprises.
A comprehensive estimate of your annual income should be at the forefront of your tax planning.
The earlier you start your planning, the longer you will have to thoroughly evaluate your options. Get a head start with Tax Resolution Group.
Tax Relief Help
Ready to take charge of this upcoming tax season? Reach out to Tax Resolution Group for a free consultation with an experienced tax resolution specialists.
Visit us at 2831 Ringling Blvd., Suite D-114 in Sarasota, Florida or call at 941-413-2799.