Now that tax season is over, you might be feeling a lot of things, such as relief, stress, or exhaustion. The worst is over, but it will be time to file taxes again before you know it. If you had to deal with a lot of headaches this time around and want to avoid them in the future, there are several strategies you can implement right now to make your taxes easier next year.
- Review- Hopefully, you’ve had a breather since filing your taxes, but now is a great time to review your return and search for things you may have overlooked. Did you claim all the deductions and credits you were eligible for? Have you checked the status of your return? Reviewing these things will prepare you for the next time.
- Optimize- If you run a business, you may want to consider optimizing the way you do your accounting. For example, if you’re doing your bookkeeping on paper, consider using up-to-date, cloud-based software instead for better access and accuracy.
- Estimate- Individuals, including sole proprietors, partners, and S corporation shareholders, might be required to make estimated tax payments throughout the year. These are quarterly payments, so if you haven’t already, sit down and estimate how much you’ll need to pay. Put the deadlines on your calendar too.
- Plan- You might be done with taxes for a while, but you could use this time to plan for your future. For example, if you’re not doing it already, you could contribute to a retirement plan like an IRA to enjoy certain tax advantages next year and save money.