The Internal Revenue Service announced that the 2019 Tax Filing Season will begin on Monday January 28th. This should give us a couple of weeks to start preparing and gather our papers and any other documents we might need. This is why we have decided to gather four useful tax tips for filing season 2019. We hope these tips will help you stay on top of your income tax return and let you be as ready as possible for when the time of filing comes.
Since we have until April 15th to submit our 2018 tax returns, we should take our time and do some research. There have been changes and updates on tax laws, and it´s always better to stay up to date with them. Also, checking on your tax withholding is a strategy that tends to be left aside. Considering all our deductions can help us reduce the amount of time we spend preparing our files. Keeping track of our state income tax can also save us time and money and avoid having a not-too-pleasant surprise.
Do Your Research
One of the most important tax tips for filing season 2018 is trying to take a fresh look at our taxing situation. There were several changes to current tax laws regarding thresholds and brackets. So, the best approach this year, is to avoid assuming we qualify for a given break and do our research instead.
When it comes to tax credits, deductions, withholds, and even state income tax, the more accurate we are, the better. Therefore, we should take advantage of the time we have before tax season begins and do our homework. Confirming whether we qualify for a credit, deduction, bracket, etc., will help us save time and money this year.
Remember to Check your Tax Withholding
Keeping track of our tax withholding is always a good idea. This is particularly true at the beginning of the year and when tax law changes. If we work for a company, most likely our employer withholds a part of your salary and pays it to the IRS. This way, you receive a smaller paycheck, but your income tax is taken care of.
However, we should be aware of how much they are withholding, or if they are at all. This will help us calculate our tax return more accurately when filing comes. If our employer withholds too little, we might be subject to a higher tax bill. If they are paying too much, however, we might have to wait until our refund check arrives.
Consider Your Deductions
Most taxpayers tend to struggle when deciding to itemize their tax deductions or going for the standard one instead. Because of the changes on tax laws, with almost doubled the standard deduction, we need to consider our options more carefully.
If we hadn´t itemized our deductions before, we might want to consider this possibility this year. However, if we had been itemizing them, we should take a deeper look into this possibility. We want to make sure that itemizing makes sense financially, and that we will benefit from it.
Keep Track of Your State Income Tax
Last but not list, one of the most useful tax tips for filing season 2018 is keeping track of our state income taxes. There are many reasons why we should do the necessary research regarding what happens in our state. For example, there are many states that have independent tax systems. This means that not every state will reflect tax law changes that happen in a federal level.
This year’s tax season will be a bit different for the majority of us. We need to make sure we are ready for those changes. Therefore, the best way to stay ahead of the taxing game is with the support of a professional tax broker or tax consultant. This way, we’ll be able to make the most out of our income tax and start a new year with the right foot.