In just a few short weeks you should be getting the tax information you need to get through the 2017 tax season. Before you head in to your tax preparer’s office, take a few moments to get organized. It’s important to have one place where you can store your tax information. When it is finally time file, your organization will pay-off.
The team Broussard Poché, LLP has a few more tips to keep in mind as the filing date approaches.
- Retirement plan contributions
If your employer offers a 401(k) or other type or similar plan, plan to contribute the maximum amount, especially if your employer matches your contribution. Anything less than the max means you are leaving money on the table.
If your employer does not offer a retirement plan, be sure to look in a traditional individual retirement account or a Roth IRA.
- Adjust withholding
Be aware of what you are withholding, this could change year-to-year if you are expecting a larger refund. This could really come into play if you are claiming the earned income tax credit, or EITC, or the additional child tax credit.
- Claim the credits
Make sure your tax professional claims every credit you are due. This could include child care credit, earned income credits, higher education costs–the list goes on. It’s important to work with a financial advisor who is up-to-date on the a latest tax codes and credits.
There is additional paperwork to fill out due to the Affordable Healthcare Act. Make sure you know what you need to report to the IRS, the shared responsibility provision requires that you and your family have minimum essential coverage or qualify for a health coverage exemption. If not, you must make an individual shared responsibility payment for all months that you didn’t have coverage or an exemption. For people with health insurance for all of 2016, all they have to do is check a box. Those without will need may need Form 8965 and/or Form 8962.
For many, things can get a bit complicated when filing, be sure you seek the advice of a trained tax professional. The team at Broussard Poché, LLP is always happy to help.