Now that we’ve all survived tax day, here are some tasks you should take care of so that next year will be easier!
Make sure that you file this year’s return and all supporting documentation in a safe place THAT YOU WILL REMEMBER. Your chances of being audited are small, but why tempt fate?
Set up a file or box where you can store all tax related documents as they come in throughout the year. This would include receipts for charitable donations, medical or educational expenses, job search expenses, property taxes, etc. You’ll be able to handle your taxes much more quickly if everything is in one place.
Take a look at how much you owed or had refunded this year. Do you need to change your withholding or your estimated tax payments? This is especially important this year given the changes in the tax law. The IRS has a calculator that you can use to determine whether you need to increase or decrease your withholding. You need your tax return and a recent paystub to use the calculator.
If you are receiving a tax refund this year, the first two things you should use it for are debt reduction and savings. (Note — a new toy or a vacation are not the first two. Just saying.)