With tax season fast approaching, the time has come to start preparing yourself and your finances to avoid being stressed on out April 15th. Filing your taxes can be a daunting experience especially for those who are unorganized or may not know too much about finance.
But don’t panic, the Aliso Viejo Chamber of Commerce has a few tips to help you prepare for tax season and several highly qualified financial advisors that will ensure you are squared away for this tax season.
1. Organize All Your Receipts & Paperwork
Make sure you have your receipts and gather your paperwork ready to go and filed in a safe place. We also recommend organizing all your receipts in the following groups:
- Home/Office: All your utility bills, repairs, and maintenance on your home or office.
- Vehicle: Any costs incurred on your family cars, such as fuel, lease agreements, and the miles driven for business purposes.
- Education: If you had costs for things like your kid’s tuition or books, prepare those receipts for future tax deductions.
- Childcare: Be sure to get the receipts from your child care provider if you have not received those already.
- Medical: All out-of-pocket premiums, deductible payments, prescriptions, and copays.
- Charitable donations: All donations made to non-profit charities.
2. Determine Which Deductibles You Can Take Advantage Of
There are a number of deductions you can take depending on your filing status. We recommend you gather the information you will need ahead of time to make sure you have the appropriate receipts when requested. If you need help identifying deductibles that work for you, consider reaching out to Summit Tax & Accounting Advisors. Rene Carlos is a member of the Aliso Viejo Chamber of Commerce, and he will be able to provide you guidance on this important step.
3. Familiarize Yourself With the New Tax Laws
There are some changes to the tax laws this year. It is a good idea to become familiar with how these changes will impact your tax filing so you can get your forms organized. The IRS has added a new line on the W-4 forms, so if you are an employer, you may want to ensure you have this new form is being used. As an employee, you may also find yourself in a new tax bracket and no longer qualified for certain deductions. If you are interested in discussing your finances with a professional, we highly recommend reaching out to Jim Sidaris, from Merril Lynch. He is a trusted member of the Aliso Viejo Chamber of Commerce and is always happy to talk to people who are interested or concerned about saving for their retirement.
If you have any other recommendations for your local Aliso Viejo community, we would love to hear from you. Either leave us a comments below or contact us.