CTC tips — create a tax plan for 2013

tax planning

Unless you received an extension, today is the final day to file your taxes. Hopefully you’ll have yours postmarked before the end of the day.

How did you do in 2012? Did you qualify for deductions that you weren’t expecting to? Were you surprised to find yourself in a different tax bracket than the previous year? Are you expecting a big refund or did you owe the IRS money?

With your 2012 taxes still fresh in your memory, now is a great time to create a tax plan for 2013 if you haven’t already. If you weren’t happy with your tax situation in 2012, use the information you have from filing to avoid the same problems this year.

Make a list of deductions that you qualified for in 2012. Will you qualify for them in 2013? Did you have too much money withheld from your paychecks? File a new W4 and adjust your withholding. Are you making any major purchases or big life changes this year? Did you forget to take dividends and other income into account? Find out how these things will affect your taxes in 2013.

These are just some examples; a review of your personal financial situation will help determine the best tax strategies for you. It might seem too early to be thinking about filing taxes again, but creating a tax plan now can make tax preparations easier and help minimize surprises the next time you file.

PS: Here is a list of a few freebies to help celebrate the end of the tax season! 

Tax Day 2013 Deals and Freebies — Three Thrifty Guys

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