Some Easy End-of-Year Tax Tips
It's holiday time, and we all know what that means. Time to think about getting some tax relief ahead of filing season. It is also time to think about paying taxes on money we have not finished earning. And you had better watch out, better not file late. One way to prevent filing late is to prepare now for April 2012. The single best thing you can do is to gather up every shred of data you have that pertains to your personal financial situation. A little bit of planning can bring a lot of tax relief.
Collect all your papers, financial data, and records of income. This is one of those menial chores that usually get put off till the last minute, hoping for tax relief. When you are struggling to file your income tax return at midnight on April 14, there is always that one document you really need, but can't find. By going through the motions now, and locating all the documents you will need, the midnight rush will never happen. Of course, W-2's aren't here yet, but if you have any receipts for charitable donations, educational expenses, or medical expenditures, put them in a file with proper labeling.
A special word about Individual Retirement Arrangements (IRAs) and charities: There are some new rules this year for each of those popular tax categories. IRA contribution levels have gone up this tax year. At www.irs.gov, you can find the exact level depending on your marital status and age. That's right, if you are over 50, you can typically add an extra $1,000 to an IRA. For most married couples the IRA deduction is now at or above $10,000, so don't miss this opportunity to lower your tax bill and build some retirement protection for yourself. If you do not have an IRA, this is the time to start, no matter what the amount. Contact your bank and set up an account with whatever amount you can afford.
No matter how much you give to charities, it all adds up at tax time. But make note of the government's new rules about charitable giving. You need to have documentation for all gifts, no matter how small. Best to have a receipt for that dollar you threw into the wishing well for sick children. If the IRS asks for proof of the donation and you don't have it, then the deduction will be disallowed. That's the new law, like it or not. (Nobody does!)
By taking care of the above-mentioned items, as well as checking the IRS website for regulations that apply to your unique situation, you will be ready for April's most stressful week. Tax relief is just around the corner.
Collect all your papers, financial data, and records of income. This is one of those menial chores that usually get put off till the last minute, hoping for tax relief. When you are struggling to file your income tax return at midnight on April 14, there is always that one document you really need, but can't find. By going through the motions now, and locating all the documents you will need, the midnight rush will never happen. Of course, W-2's aren't here yet, but if you have any receipts for charitable donations, educational expenses, or medical expenditures, put them in a file with proper labeling.
A special word about Individual Retirement Arrangements (IRAs) and charities: There are some new rules this year for each of those popular tax categories. IRA contribution levels have gone up this tax year. At www.irs.gov, you can find the exact level depending on your marital status and age. That's right, if you are over 50, you can typically add an extra $1,000 to an IRA. For most married couples the IRA deduction is now at or above $10,000, so don't miss this opportunity to lower your tax bill and build some retirement protection for yourself. If you do not have an IRA, this is the time to start, no matter what the amount. Contact your bank and set up an account with whatever amount you can afford.
No matter how much you give to charities, it all adds up at tax time. But make note of the government's new rules about charitable giving. You need to have documentation for all gifts, no matter how small. Best to have a receipt for that dollar you threw into the wishing well for sick children. If the IRS asks for proof of the donation and you don't have it, then the deduction will be disallowed. That's the new law, like it or not. (Nobody does!)
By taking care of the above-mentioned items, as well as checking the IRS website for regulations that apply to your unique situation, you will be ready for April's most stressful week. Tax relief is just around the corner.
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Seeking tax relief from the IRS? Contact Guardian Tax Resolutions. The Guardian will help you resolve your tax issues and get you the piece of mind that you deserve.