5 Things You Should Do Now That You Have Filed Your Income Taxes
1-Review Your Withholding.
It’s next to impossible to have exactly the right amount of money taken out of your check to leave you with a zero balance on your tax return. Far too little taken out of your paycheck can lead to costly penalties. A large refund may be nice, but it is really an interest-free loan to the government.
To adjust your withholding, fill out a new W-4 form with your employer or adjust your quarterly payment.
2-Prepare for Claiming All Your Tax Breaks
You may have noticed tax deductions and credits when preparing your 2015 taxes. Most people wait until the last minute to document their tax breaks. With the deductions and credits fresh in your mind, start collecting the documents and keep them in a central location now. This will make tax preparation time go much faster and you have less chance of losing a deduction. (I do this monthly so I don’t forget mileage, supplies or any other deduction.)
3-Review Your Investments
Tax rules change from year to year, however, your strategies can make the tax impact minimal. It is time to review how your 401(k), IRA, ROTH, etc. did from last year. Were they winners or losers? With most of 2016 ahead of you, at least knowing your options will help you save at tax time.
4-Check the Status of Your Tax Return
Before you check to see where you tax refund is, you should check the status of your tax return to make sure that your return has been accepted by the IRS. Generally you can get tax refund information 72 hours after the IRS has acknowledged the receipt of your efiled tax return, or 3 to 4 weeks after mailing a paper tax return. If you return was rejected by the IRS, correct any errors. The amount of time it takes to get your refund depends on how you choose to receive it. Direct deposit take 7-21 days and check by mail at least 3-4 weeks after IRS approval.
If you’ve got all these ducks in a row, take a break.
Relax. Breathe. Do something fun.
You definitely deserve it.
5-Review Your Saving Strategies With a Professional
Do you already have a financial adviser? Then get a second opinion! If you are doing the same strategies as you did 10 or 20 years ago, it is definitely time for a fresh look at your options. The economy has changed and so should your strategies.
I can help you through a private consultation or attend one or more of our classes. Consultations and classes are free. Know your options so you can make an informed decision about your financial future.