Looking Ahead: Tax Moves to Consider for the Rest of the Year

by Miranda Marquit · 0 comments

One of the best things you can do for your finances is to look ahead, and make plans for the coming months. Being able to look ahead and prepare for expenses, as well as being ready for upcoming expenses, can provide you with the ability to avoid serious financial problems. When you are able to prepare ahead of time, you have a better chance of being taken by surprise.

If you want to prepare for the rest of the year, one of the things you can do now is prepare for tax time. It seems like tax time is a long way off, but the reality is that we are already in August. The end of the year will be here before you know it. Whether you are getting ready to pay quarterly taxes, or whether you just want to make sure you get all the deductions and credits you are eligible for, it makes sense to look ahead now, so you aren’t scrambling come January.

Organize Your Paperwork

Now is a great time to organize your tax paperwork if you haven’t been keeping it organized already. Make it a point to look at where you stand. Do you have your receipts organized? Have you been keeping good records? Set up a file for tax information, and then keep it organized the rest of the year. This reduces stress come tax time — for you and your accountant.

Consider Your Possible Tax Deductions

Look ahead. Are there tax deductions you are eligible for? If so, you can start doing what’s necessary to qualify for them. If you aren’t contributing what you can to your retirement account, consider boosting your contributions. Give to charity. It’s much easier to give $100 a month from now to the end of the year than to quickly come up with $400 or $500 all at once. You can also look at your investment portfolio. If it’s time to rebalance, you can sell losers to harvest the losses on your taxes.

If you have a business, or are planning on making some other expense, pay attention. You can get a business deduction, or even deduct the cost of a move. Look ahead, and plan your spending so that you get the maximum tax benefit.

Are there Credits You Can Take?

You can also look for credits. Whether it’s for sending your child to day care, or whether you are putting in a solar panel power system, you might be able to claim a tax credit. Learn about what you need to do to be eligible so that you can follow the proper steps. It’s much better to be ahead of the game, and make sure you are doing everything right ahead of time. You can also use this as a time to save up for later.

Looking ahead gives you time to prepare and plan your finances so that it’s not a big problem later. Take a few minutes to look ahead toward the end of the year, and make adjustments that can help you.

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