April 15th has come and gone, but that doesn’t mean tax time is behind you. Broussard Poché, LLP knows that prepping for tax season is a year-round job. In fact, there are some things you can do this summer to stay on top of your financial needs.
- Look back to Plan Ahead
Revisit your W-4 withholding, take a look at your most recent paystub to see your year to date withholding amount. Are you withholding enough? Have you withheld too much and it’s time to make a change? Now is the time to ask these questions, getting a handle on it will take the burden off next Spring.
- Update Financial Information
If you bought Marketplace insurance and received a tax credit to help pay for coverage, you must update your financial information in the Marketplace. This should be done throughout the year and will ensure you’re getting as much help as you’re eligible for. Plus it will also help you avoid having to pay back any extra tax credits.
- Organize, Organize, Organize
Keep a running tab on receipts, donations and any other forms of income you may have. Are you making money this year and don’t even realize it? How about your stock portfolio? Why wait until the end of the year? If you keep track year-round you can ease into tax time come 2017.
- Think Long Term
Look ahead to retirement. Are you contributing enough to your 401(k) plan throughout the year? Now is the perfect time to evaluate your retirement goals. Remember, these contributions are exempt from IRS tax withholding, but they are also not reported on your tax return.
- Summer Tax Credits
Don’t forget, you can take advantage of the Child and Dependent Care Tax Credit. In a previous blog, Broussard Poché, LLP highlighted the ways this credit can be used to help working parents get through the summer and save a lot at tax time; you can read it here. Remember, the key to this credit is that it must be a work-related expense. Summer school, tutoring programs, and overnight camps are not considered work-related but check with your tax advisor just to be sure about your particular situation.
Take advantage of the time you have now to plan ahead! You’ll be thankful for the extra organization and forethought in April of 2017.