New Year, New Tax Resolutions

We’re already midway through the first week of 2018, and you may have started working on your personal New Year’s resolutions. But, we have one more thing to add to your resolution list: tax preparation. As you start getting all your 2017 tax documents ready, start thinking about ways to make your 2018 filing easier, too.

Paying attention to life changes is one way to start preparing. Perhaps you got married or had a child this past year. Maybe you moved or established a new business. These life changes can greatly impact your taxes. Likewise, if you are anticipating any of these life changes happening in 2018, it pays to understand the tax implications of each so you can be better prepared to file next year. It’s never too early to start thinking about taxes!

Here are a few tax resolutions to consider in the new year:

Keeping good records and documentation is crucial when it comes to tax preparation. It’s easy to forget expenses that may be deductible or have inaccurate numbers. This is especially true if you are self-employed. When you keep good records and file away all your receipts, you will be in the best shape possible come tax time.

Retirement Plan Contribution
Make an effort to contribute more to your retirement savings account each and every year. The income deducted is tax-deferred and it will net you more money when it does come time to retire. It’s a win-win if you want to stay on top of future planning.

Charitable Contributions
Keep good records of any and all charitable contributions throughout the year. Whether you donate cash or goods, the donations are tax deductible. Just make sure your records are accurate, understand what you can and can’t deduct and obtain receipts for any large contributions.

Consult with a Professional
You can try to do your taxes yourself or use software, but the truth is working with a tax professional will usually produce the best tax results. Talk with Ferguson, Timar & Company to schedule a tax consultation. We’ll help you make the right decisions, maximize your deductions and get the best possible tax return. Call us today to get started!