Jump On Your Taxes Now

Just because you filed your tax return doesn’t mean you don’t need to think about taxes for the rest of the year. What you do now may affect any tax you could owe or refund you may expect next year.

Check Withholdings

It’s a good idea for everyone to do a Paycheck Checkup to make sure you’re not having too little withheld, which could lead to a smaller than expected refund or even a tax bill. You may also want to ensure you aren’t having too much tax withheld if having that extra money in each paycheck is more helpful than getting a larger refund when you file.

Organize Tax Records

Get ahead with tax info gathering by utilizing our portal system to assist us in next year’s tax return preparation. Add tax records to your portal as you receive them. This includes year-end Forms like W-2’s from employers, Form 1099 from banks and financial institutes, other income documents, and records of virtual currency transactions.

Identify Filing And Dependent Status

Your filing status is used to determine filing requirements, standard deduction, eligibility for certain credits, and the correct tax. Changes to family life—such as marriage, divorce, birth, and death—may affect your family’s tax situation.

Know How Adjusted Gross Income (AGI) Affects Your Taxes

Your AGI and tax rate are important factors in figuring your taxes. AGI is your income from all sources minus any adjustments or deductions to your income. Generally, the higher the AGI, the higher the tax rate, and the more tax you pay. There are several ways to reduce your AGI, set up an appointment with G&F before December 31st to go through some year-end tax planning opportunities. Maximize tax credits and deductions Taxable income is what’s leftover after a taxpayer subtracts any eligible deductions including their standard deduction, from Adjusted Gross Income. Most taxpayers take the standard deduction, but some may choose to itemize deductions as it may lower their taxable income even more. As a general rule, if your itemized deductions are greater than the standard deduction, you should itemize.

Save For Retirement

Retirement savings can also lower your AGI. Contributing money to a retirement plan at work, like a 401(k) plan, can reduce your AGI. Investing in a traditional IRA plan is another way to save for retirement and lower taxable income. Self-employed SEP, SIMPLE, and qualified plans are also retirement options that can lower AGI.