What To Do After You File Your Taxes
Taxes are a big deal to most American families. Most of us focus on them heavily at the start of the new year right until they file their return before April. After they get filed, most people don’t think about them again until next year.
Which is a shame, because taxes can cost or save you a lot of money.
What you do after you file your taxes is just as important as when you do before! Spending just a few minutes now to set yourself up for a better tax situation next year is a great use of your time.
Because next year, you’re going to be ahead of the game when it comes to taxes. No more anxiously getting them filed just to get them done quickly. We’re going to be proactively setting yourself up to be in the best position possible for next year.
These steps will take you just a few minutes this year, but can save you thousands of dollars next year!
Decide on what to spend your refund on or come up with the payment if needed. Choose to spend your refund wisely and go after your larger goals like living debt free, or buying a house.
Get your tax information organized. Start a file with the last three years returns (or seven if you’ve filed a claim for loss from worthless securities or bad debt deduction). Include a folder for documents that you can collect things during the year that you’ll need to file next year's taxes.
Our file includes receipts for repairs for a property that we own and rent out, child care information, and documentation for energy efficient appliances that get us an additional tax deduction.
Connect with your tax advisor throughout the year. That 5 minute phone call can save you a ton of money at the end of the year. Start with a phone call right now to ask what you can do now to give yourself a better tax situation next year.
As things change during the year, reach back out them and ask for help. This is especially important for changes like marriage, divorce, a new business, a large purchase or investment
If you need to find a tax advisor to help you figure out the best tax strategy, you can find out more about Block Advisors here. They have year round support for tax questions for everyone’s finances, whether we’re talking small numbers or big numbers.
That’s it! Just a few minutes of staying proactive will make a huge difference next year at tax time!
What do you deduct on your taxes to get a larger return?
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