We are in the middle of tax season and if you haven’t filed yours yet, you may get a better return if you start the process soon!
That’s right, starting early is key because that gives you an opportunity to look for relevant deductions and make some changes before you submit your return to Uncle Sam!
But that’s not all, consider how the changes to the tax law impact you.
Bankrate.com, says one of the most significant changes this year is the increased standard deduction. It’s now $12 thousand for individuals – $24 thousand for those filing jointly….up from last year.
Plus many deductions have disappeared like personal exemptions and moving expenses for non-military tax payers. You’ll want to talk to a professional about how these will impact your return.
Next, evaluate changes with your employer. It’s generally too late to change your tax liability for 2018, but you can start planning for next year. Adjust your 2019 withholding information by updating form W-4 with your employer.
And lastly, look at your overall financial health. Bankrate says in some cases you can still make an IRA contribution and get a deduction on what you owe this year. Otherwise you may consider putting your return into a retirement account.
Bottom line tax time is a great time to plan ahead, think about your financial goals and reducing your tax liability in the years to come.