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Although summer is still creeping to a halt, there's no better time than now to plan for tax filing next year. Why? Consider the security of your identity and the accuracy of your tax return. If either of these details are important to you, today is the day to begin charting your tax filing course.
While you may not begin receiving income documents for several months to come, there are a few things to keep in mind as we move toward the New Year. A little preparation will go a long way to ensuring that your taxes are filed quickly and, above all, safely. There's plenty to watch out for in the coming filing season.
What About Those Deductions
With only a few months left in 2015, now is the time to review where you stand with your deductions. Your charitable endeavors will go far in helping offset a tax liability when you file next year. However, you have to make sure that any deduction you intend to take is for a charity recognized by the IRS. And you'll want to be certain that you have a receipt verifying each donation, just in case you're questioned about it later on. Since you have precious little time to get your handouts into deserving hands, start planning how to use your remaining months for any allotments. Your tax bill will thank you come April.
Be Ready to File Early
An increasingly burdensome filing issue has arisen from fraudsters filing phony returns using taxpayers' personal information. These crooked individuals submit a return under your name and social, but provide false income information and an address to receive the tax refund. While stepped-up IRS security measures are being implemented to stem the tide of fraud, you can do your part by getting your return filed as quickly as possible. Since identity thieves are counting on submitting before you get the chance, your sense of urgency can be a big step toward protecting yourself.
Plan for Potential Liabilities
If you're having an excellent year with respect to income earned, or you experienced some type of windfall which will nudge you into a new tax bracket, now is the time to plan for any fallout during tax season. While it might seem like a long ways off, there are plenty of opportunities for you to overspend between now and April 15th. If you start stockpiling money now in preparation for a sizable tax bill, your stress level won't redline at the last minute. Once you get behind on what you owe to Uncle Sam, catching up can be an uphill endeavor.
Resolve Any Existing Issues
If you already have a tax debt, you certainly don't want to compound it with a new liability next year – especially when you can address it now. Penalties and interest can rapidly expand your debt, which can create an untenable financial problem in the long run. The good news? You don't have to address your tax debt alone. A tax resolution company can provide you with a reliable resolution to get you back on track before you have to break into a brand new tax return. Whether you're resolving a current issue or preparing for a new one, there's no reason you can't do it with peace of mind and a minimum of stress.