As the New Year begins, setting clear tax goals can help secure your financial future. Here’s how to get started:

1. Organize Your Financial Records

Gather all relevant documents:

• Income Records: W-2s, 1099s, and other income statements.
• Expense Receipts: Charitable donations, medical expenses, business expenses.
• Investment Documents: Dividends, interest, and capital gains.

2. Review Last Year’s Tax Return

Identify areas for improvement:

• Missed Deductions or Credits: Ensure you take advantage of all available deductions and credits.
• Taxable Income Surprises: Plan better for unexpected taxable income.

3. Set Specific Tax Goals

Examples of goals:

• Maximize Retirement Contributions: Contribute the maximum to 401(k)s or IRAs.
• Increase Charitable Contributions: Plan and record donations.
• Track Business Expenses: Keep accurate records if you’re self-employed.

4. Plan for Major Life Events

Consider the tax implications of:

• Marriage or Divorce: Changes in filing status and deductions.
• Having a Child: Additional tax credits and deductions.
• Buying or Selling Property: Capital gains or losses.

5. Schedule Regular Check-Ins

• Quarterly Reviews: Assess progress and make adjustments.
• Tax Planning Meetings: Meet with a tax professional quarterly throughout the year.

6. Consult a Tax Professional

A tax professional can:

• Identify Tax-Saving Opportunities: Uncover deductions and credits.
• Ensure Compliance: Meet all filing requirements and deadlines.
• Strategize: Develop a comprehensive tax plan.

Conclusion

Setting New Year’s tax goals can lead to significant benefits. By organizing your records, reviewing past returns, setting specific goals, planning for life events, scheduling check-ins, and consulting a tax professional, you can optimize your tax situation and achieve financial security. Start the year off right by taking control of your taxes.

Ready to achieve your tax goals? Schedule a consultation with us today.