I would like to share with YOU many asked questions we receive about taxes.
An example to keep in mind was that a client was frustrated because they owed close to $3000.00 on their returns. After carefully, analyzing the problem we were able to identify that they were not paying enough taxes.
In another case, the client had borrowed up to $6000 to pay back their tax debt. Payment of taxes along with debt is something that brings loads of pressure on a common man or woman. I've seemed the hurt and felt their pain when analyzing their pressure.
This is something that must not be taken lightly in any case. The pressure of mounting debts and taxes can end up extremely stressful. Thus, you must ensure that everything is kept well managed and balanced on time. After all, there is nobody who can escape from taxesand live peacefully.
Below is a list of things YOU can do NOW to manage your debts and taxes
1. Try preparing a central location for all the debts and tax documents: You must make sure that you keep all tax documents together at a single place. January and February is the time when your taxes are filed. If you have all your documents intact then you can make the process of filing your taxes smoother.
2. Finish up your charitable contributions: If you have desired to contribute something towards charity then do make sure that you do it to get a deduction from the taxes. Being a W2 employee, you must keep a careful record of all the donations.
3. Start following some tax-oriented online blogs: Tax-oriented online blogs will allow you to understand any update that the government has made. It’s better for you to know what’s happening versus your tax adviser. It is better if you know that you can’t get a HUGE refund because of XYC.
4. If you are a 1099 contractor: Review all of your expenses, organize them on a spreadsheet and have all documents ready for yourtax adviser. Don’t wait till the last minute to get your documents reviewed.
5. Begin saving: If you think that tax payment is approaching, you then begin saving as soon as possible. (This is only for 1099 contractors or business owners). If you don’t have to pay you will have a surplus.
6. If you OWE a balance: Please stay in communication with the IRS. They will work with you. Communication is the KEY.
7. W4 Employees: Review the amount of taxes being taken out of your tax documents and ensure that it’s correct. You should double check to make sure there are no errors. Your HR Department is very helpful.
YOU can design your very own “perfect tax system”. It is short and simple. It does not comprise of a long list of rules and regulations. Taxpayers must prepare themselves for the upcoming tax system by analyzing their overall debts and incomes. You must keep all things in mind to successfully handle your debts and taxes. You should carefully manage your expenses and debts accordingly. If you have been a W2 employee, then you must analyze your exceptions so that you can pay back everything you owe. Don't wait until the last minute, it will cost you.
If you have any further questions about this topic, don’t hesitate to AskTani.