Top Tips to Tame Your Taxes
Follow these tips to make tax season less taxing.
Tax season is upon us, but these tips can help make your taxes less taxing.
Get in good form.
Your W-2 and 1099 forms should be received by January 31. If you don't have them, talk to your banks and employers.
Get organized.
If you haven't done so already, now is the time to organize your financial paperwork to make sure that you have all the papers you need. Find a system that works for you and follow it.
Get help.
While, in some situations, doing your own taxes is easier and less expensive, it may make more sense to hire a tax expert if you have a complicated tax situation, or if you have experienced any life-changes, such as getting married or starting a business.
Look into home ownership.
Owning a home may offer you some tax savings. To prepare for owning a home, start saving for a down payment, improve your credit score, and get your debt under control.
Look into borrowing against your home equity.
If you have tax bills, or if you are thinking about borrowing money for other reasons, a home equity loan or home equity line of credit may be an option for you that may offer you a lower interest rate than other ways to borrow, plus you may be able to deduct the interest from your taxes. Be sure to consult your tax advisor.
Visit our Home Equity page to learn more about our home equity loans and lines of credit.
Max out your retirement account.
Ask a tax expert how much you can contribute to your IRA, 401K, or 403B plan and aim to contribute the maximum amount allowed by law. Even adding just a little bit more to your retirement account means tax savings.
Protect yourself.
Make sure that you get any promises or details about help with your taxes in writing, ask a legal or financial expert to help you understand anything that isn't clear, and avoid agreeing to anything that seems too good to be true or too easy to do.
These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert. Contact us for more information.
