By Stephanie Foster |
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Yes, that's right, it's that time of year nobody loves - tax time!
No, this is not too early to think about it, especially if you
have money coming to you.
All right, so it's not fun to
think about doing your taxes. But there is a distinct advantage
to getting an early start - it's a reminder to be more organized
in this regard in the year to come. Make this as pleasant as
possible next year.
Now, if you and your spouse each have
jobs rather than businesses, your employer has handled the bulk
of the paperwork as far as paying taxes goes. You just have to
know what your deductions are. If you're only taking the
standard deduction, you may be paying too much, sometimes quite
significantly. If you aren't sure what all you can take a
deduction on, consult your accountant, or, if you do your own
taxes, go to http://www.turbotax.com/ and see what they suggest.
You may get a pleasant surprise. They links to tax tips right on
their front page.
Of course, if you have a home business,
you have more paperwork and more deductions to consider. This is
why many home businesses prefer to use an accountant. It saves a
lot of worry and can be worth the expense. You can deduct in
many cases for your home office, business supplies and more.
Consult with a tax professional, and be sure you have receipts
for everything in case you are unlucky enough to be audited. I
am not a tax professional, so I really cannot give you better
advice than that.
Now, if you've done your taxes and find
out you're getting a big refund, it's time to celebrate, right?
Not really. If you're getting a big refund, that means you gave
the government an interest-free loan. You need the money more
than they do, right? If you are overpaying to avoid underpaying
(and who likes paying more at tax time), put the excess you were
thinking about paying into some kind of savings account. Even a
plain savings account in a bank pays more than nothing, and
you're still getting the advantage of money saved up. This is
far harder to do, of course, since the money is nicely within
reach, but it's a good practice in general to have some money
you rarely touch anyhow.
Getting your taxes under control
now can save you a great deal of trouble next year and in future
years. Build good filing habits so that if you are ever audited
you can easily justify your deductions. And finally, consult
with a tax professional to get the most out of your tax return. |
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