After Tax Season List
So tax season is now behind you. What do you do now? Well depending on your tax situation you are either lamenting the fact that you owe another year of income taxes with your tax return or you are happy that you are receiving a refund and will have more money in your pocket. Whatever your situation there are a few things that you can do (at least from a tax perspective) after the April 15 deadline has come and gone. The following is a list of recommendations that you might want to consider in making your tax situation better and more improved.
- Make a prior year tax assessment. Right after April 15 is a good time to reflect on your tax situation. Did you receive a large refund? Did you owe a large amount of tax? Why did you receive a large refund or owe a large amount of tax? Were there issues on your return that were addressed properly? Can you improve on your recordkeeping? If you cannot answer these questions yourself it may be beneficial to contact your accountant to get answers to these questions. In the final analysis you should ask yourself how you can make your tax situation and tax preparation experience the best as possible.
- Reflect on the current year. After reviewing your prior year tax situation you should then take a look at the current year. Some of the questions you should ask yourself would include: Is my withholding from my employer accurate for my current year income and deductions? Should I increase or decrease my withholding? If you are self-employed should I be paying quarterly tax estimates or should I adjust the tax estimates that I am currently paying? Are there any significant changes in lifestyle or job status that will affect my tax situation? Are there any significant changes in my financial situation that may affect my tax status?
- Tax Planning. For the majority of taxpayers they will not have to do any tax planning whatsoever. However, there are some taxpayers in which tax planning should be a requirement. These type of taxpayers would include self employed, businesses, investors, and high net worth individuals. After an analysis of your situation you may come to the conclusion that tax planning may be warranted. If that is the case then you should find an experienced and competent accountant to assist you with the planning.
- Is my accountant giving the best possible service? Take an inventory of your relationship with your current accountant/tax preparer. Is your accountant preparing your tax return accurately? Does your accountant communicate with you regarding significant and relevant issues on your tax return? Is there fast turnover on the preparation of your tax return? Are the accountant’s fees reasonable? Does your accountant look at every possible tax benefit that is available to you? Does your accountant obey the law?