8 Tax Tips to Help Navigate the New Year

8 Tax Tips to Help Navigate the New Year

— November 19, 2014

It’s 2014 and the tax season is just around the corner. The following tips and tricks will help you while dealing with your taxes to save time, money and avoid a headache.

Start a New Tax Record File

Starting a new tax file in January is one of the best things you can do to prepare for the tax season. Using a simple manilla folder to file all your W2s for 2014, 1099s and other year-end tax records. You should also create a file on your computer for your digital records. Keeping the manilla folder next to where you collect your mail will help you organize any tax documents straight from the envelop into the folder.

Take Advantage of Extended Contribution Deadlines

Even though 2013 is over, you can still contribute to some tax advantage savings account. Up until the time you file your taxes, you are still able to contribute money to an IRA and Health Savings Account. Qualified filers are able to deduct the money they contribute to and IRA or HSA.

File Online

The simplest, less error prone and fastest way to file taxes is to use an online service like TurboTax to file your taxes. By filing online you can use the e-file service to send your documents to the IRS. Setting up e-file with direct deposit is the fastest way to see the refund in your account. By asking you simple questions about your life, TurboTax can credit your eligibility for the biggest tax refund.

Expecting a Tax Refund?

If you know that you will be getting a refund after you filed your taxes then why wait. As soon as you have all the information needed to file, its time to file. The quicker you file your taxes the faster you will get your refund.

Review Your Employer Withholding Accounts

Review your W-4 and check that it matches your current situation. Certain things can have an impact on how your taxes should be withheld, for example, additional dependents, marriage and other life events. TurboTax can help you figure out your correct withholding.

Make Your Last Estimated Payment Before January 15th

You should make your last estimated tax payment by January 15th if you are responsible for your own taxes throughout the year.

Set Savings Goals Using New Contribution Limits

Setting up and automatic savings deposit for a 401k, IRA or HSA account at the beginning of the new year is a good step you can take, since the IRS has already released the income and contribution limitations.

Create a Year End Reminder

Set a reminder for yourself to review your tax situation in the last quarter of 2014. Doing so will allow you to make the year-end tax moves that will have the biggest impact on your 2014 taxes.