Tax season is officially over. It is tempting to push all plans for next year’s taxes to the back of your mind, but if you plan now instead of putting it off until the last minute, you can be more strategic and likely save more for 2016. It will also save you stress next year because you will be ahead of the curve. Think of taxes throughout the year, and they won’t be a sudden stress next April.
You cannot predict all of the things that can happen in a year, so planning your taxes to the exact number can be difficult, if not impossible. However, you can plan for variables and estimate what will likely happen. Each month, see if your expectations match with reality, and make sure your tax planning reflects reality no matter the good or the bad. Taking a little time each month or quarter when everything is still fresh in your mind can save you trying to remember things from a year ago at tax time.
The PATH Act Makes Planning Easier
The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) means that many tax breaks that you were unsure you could count on when planning your future taxes are extended throughout 2016 and beyond. Some tax breaks were also made permanent through this Act. This makes planning much easier, because the uncertainty surrounding these tax breaks is gone. There is no reason to wait to plan next year’s taxes. Do your future self a favor and start planning now while this month’s or quarter’s information is still fresh in your mind.
It is not too early to start planning for next year’s tax return; in fact, early planning can save you both stress and money. To start planning today, contact one of our expert tax advisors to discuss ways your company or family can save even more next year by not putting your tax planning off until the last moment. Contact us at 952-893-9320 or learnmore@BoulayGroup.com.
File download: When Should You Plan for 2016's Taxes?