The information you need to file for the 2018 tax season could be making its way to you right now. Before you head to your tax preparer’s office, get organized and ready to make an impact on this year’s taxes. Being prepared is one of the greatest things you can do to help your tax team and yourself. The team at Broussard Poché, LLP has a few more tax tips to keep in mind as the filing date approaches.
- Retirement Plan Contributions
If your employer offers a 401(k) or other type of 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 into 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 latest tax codes and credits.
Electronic filing is really for those expecting a refund. The IRS processes electronic returns faster than the old-fashioned paper returns. If you e-file you can expect a faster refund, 3 to 6 weeks faster! Plus. less than 1% of e-filed returns have been shown to contain errors.
Now, if you expect to owe money, you can still file electronically. You’ll just have to wait until the federal tax filing deadline to send in your payment.
- Ask for Help
If your taxes are pretty basic, you may be able to handle things yourself. BUT if you need to go the more complex route—hire a professional.
It’s not worth risking getting things wrong and losing money! The team at Broussard Poché, LLP is always happy to help.