Though the 2015 tax season is not upon us quite yet, now is the time to take steps towards planning for next year. If you are a business owner, it is never too soon to schedule a meeting with a local Certified Public Accountant to review your finances as they stand in this present moment so that you can better understand tax implications later.
The IRS states that once your tax return has been filed, it is not uncommon to forget all about them. However, they go on to state that there are several reasons why starting on your 2015 taxes now is a great way to avoid tax surprises when you file next year. The following are some tips:
Have everyone involved in making financial decisions put relevant paperwork in the same, safe place throughout the year. This way, you will not have to waste time searching for misplaced records. If you are unsure about which records will be pertinent to the tax-filing process, your local CPA can assist you.
Review the Law
Laws concerning tax are constantly changing. You can subscribe to IRS Tax Tip emails to receive information about law changes as they occur. If you are not sure which laws apply to you and your business and need some assistance sifting through the law and which forms you need to provide when tax season rolls around, call a CPA near you.
Update Forms Often
If life changes occur in your life or the lives of your employees, it is important that all tax forms are updated. If you or an employee of yours has gotten married, divorced or had a child, this affects the amount of taxes that are taken out of their wages. These types of changes warrant alterations to the individual’s W-4.
Your local CPA can assist you in making this decision, but itemizing deductions on your taxes can save you more money than claiming a standard deduction. According to TurboTax, itemizing pays off for one out of four taxpayers. Though that may not seem like much, 25% of taxpayers are benefitting from itemizing their deductions. If you are interested in finding out if itemizing your deductions will save you money, it is important to decide as soon as possible. The sooner you know, the sooner you can start keeping track of those financial decisions more carefully.
Though the 2015 tax season may seem like forever away, it is imperative that you begin planning now. Feel free to schedule a meeting with one of our qualified CPAs who understand the importance of being well prepared.