Start Planning Now for Next Year's Tax Return

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Thetax deadline may have just passed but planning for next year can start now. TheIRS reminds taxpayers that being organized and planning ahead can save time,money and headaches in 2013. Here are eight things you can do now to make nextApril 15 easier.
1.    Adjust your withholding -Why wait another year for a big refund? Now is a good time toreview your withholding and make adjustments for next year, especially if you'dprefer more money in each paycheck this year. If you owed at tax time, perhapsyou'd like next year's tax payment to be smaller. Use IRS's WithholdingCalculator at www.irs.gov orPublication 919, How Do I Adjust My Tax Withholding?2.    Store your return in a safeplace - Putyour 2011 tax return and supporting documents somewhere secure so you'll knowexactly where to find them if you receive an IRS notice and need to refer toyour return. If it is easy to find, you can also use it as a helpful guide fornext year's return.3.    Organize your recordkeeping - Establisha central location where everyone in your household can put tax-related recordsall year long. Anything from a shoebox to a file cabinet works. Just beconsistent to avoid a scramble for misplaced mileage logs or charity receiptscome tax time.4.    Review your paycheck -Make sure your employer is properly withholding and reportingretirement account contributions, health insurance payments, charitable payrolldeductions and other items. These payroll adjustments can make a big differenceon your bottom line. Fixing an error in your paycheck now gets you back ontrack before it becomes a huge hassle.5.    Shop for a tax professionalearly - If youuse a tax professional to help you strategize, plan and make financialdecisions throughout the year, then search now. You'll have more time whenyou're not up against a deadline or anxious for your refund. Choose a taxprofessional wisely. You are ultimately responsible for the accuracy of yourown return regardless of who prepares it. Find tips for choosing a preparer atwww.irs.gov.6.    Prepare to itemize deductions -If your expenses typically fall just below the amount to makeitemizing advantageous, a bit of planning to bundle deductions into 2012 maypay off. An early or extra mortgage payment, pre-deadline property taxpayments, planned donations or strategically paid medical bills could equalsome tax savings. See the Schedule A instructions for expenses you can deductif you're itemizing and then prepare an approach that works best for you.7.    Strategize tuition payments -The American Opportunity Tax Credit, which offsets highereducation expenses, is set to expire after 2012. It may be beneficial to pay2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500,before it expires. For more information, see IRS Publication 970, Tax Benefitsfor Education.8.    Keep up with changes -Find out about tax law changes, helpful tips and IRSannouncements all year by reading ABA Tax Accounting blogs. The ABA Tax issuestips regularly throughout during the tax season and outside the tax season.
 The IRS emphasizes thateach household's financial circumstances are different so it's important tofully consider your specific situation and goals before making large financialdecisions. Looking for anexperienced and licensed by IRS tax preparer? As always we are available tohelp. For no obligation free consultation contact us today!ABA TaxAccountingAbatax81@gmail.comDirect612-282-3200Tollfree 866-936-0430http://abatax81.blogspot.com