You can breathe a sigh of relief. Tax day is over! (if you mailed your forms on time)
But it is never too early to start thinking about next year. There is something you can do NOW to make your taxes easier next time around. So I am giving you my number one tax tip. Here it is:
***Plan your taxes a year in advance.
Almost nobody does this, but it is an extremely simple way to make better use of your money. Here is the breakdown:
- Most people have a good idea how much money they expect to make next year
- Your income will tell you the tax bracket
- Your tax bracket is used to calculate your tax owed
- You can check your tax owed against the Federal withholding on your paycheck
With these four steps, you should know a year in advance how much you are going to pay in taxes. This enables you to ensure the government isn’t taking too much out of your check, avoids any unpleasant tax surprises and penalties, and allows you to enter next tax season with confidence.
Did you survive tax season this year? Did you get any unpleasant surprises? Email me back and let me know.