Prepare! The Tax Man Cometh!

Prepare! The Tax Man Cometh!

This is going to be a short blog ‘cause you got stuff to do…like your taxes. We’ve procrastinated long enough and April 15 is around the corner, along with spring.

Here are some helpful hints to get you on your way to prepared for getting taxes checked off your list!

  1. GET TIME SCHEDULED ON YOUR CALENDAR.
  2. Gather your papers. If you followed our paperwork management January suggestions, you should be in good shape. You have a box with last year’s tax papers all together and have been collecting your tax statements.  You have also printed off your year-end summary of all transactions from your cash flow tracking tool, like Mint, or from your bank and credit card companies.  If you haven’t got these things done, you better get busy!
  3. Audit that you have ALL the tax forms you need. Now, many employers, investments, banks, etc. expect YOU to print off the tax forms rather than mailing them to you.  It’s easy to miss something and then end up with penalties because you forgot them.  Cross reference EVERY account you have with their tax form.
  4. You can use the Fiscal Fitness Tax Organizer to help make sure you have pulled together all the categories. Accumulate the paperwork and then create a spreadsheet where you add the various categories up.  Tip: Store the spreadsheet in your Permanent Cloud Folder under the right tax year. It will make it easier for next year!
  5. MONEY magazine had a great list of the most common mistakes people make when filing their taxes. If you think you may be missing one of these, look up their article or contact your coach! Mistakes included:
  • Missing sales tax
  • Overlooking investment losses
  • Ignoring medical expenses
  • Taking the wrong college write off
  • Not adding up child care
  • Picking wrong work-related expenses
  • Deducting children’s student loan interest
  • Failing to document charitable expenses
  • Missing self-employment deductions
  • Not revisiting past returns
  • Letting a loser Roth Conversion stand
  • Overlooking health plan paperwork
  1. There are still some tax moves you can make, such as contributions to IRAs, Roth IRAs, and even SEP plans. Call your coach if you think there are some options that you want to explore.  By the way, you can check out the “It’s Taxing Time Graph” of tax strategies put out for the end of the year to see which ones might match your goals.
  2. Finally, stop complaining about your tax bill. As you look at it, think of all the things you are funding. Don’t you want the government to be paying our military and veterans, to fix roads, to fund social security and a host of other things?  Sure, they’re a little crazy at times with their budgets and make mistakes.  (Don’t we all!?!)  But we live in a great country and your taxes are making it great!  Get your taxes done, go enjoy the spring weather, and then we’ll start planning how you will handle taxes this year to maximize the tax code and pay just your fare share!

If you’re a current client reading this post, remember that we are only a click away to set up a call and help you with your situation. If you’re not a client, but are interested in learning more about our services, follow this link to schedule your complimentary call today and find out if we are good fit! 

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