Tax Plan for Tax Year 2019
Fail to Plan Is Plan To Fail.
Tax Year 2019 is from January 1, 2019 – December 31, 2019. You pay Taxes with your hard earned money. Taxes can be complicated and stressful, and you could waste your money if you don’t proper plan or don’t work with the right people or right web site.
Follow these easy to follow tips to contain your tax stress levels: Stupid and Smart Things Taxpayers Do When Filing Taxes.
In order to reduce your taxes or increase your tax refund in conjunction with your next tax return, tax planning throughout a given tax year is critical. In addition, planned life changing events (marriage, home purchase, etc.) should also consider the possible tax implications. The same is true for unplanned life changing events, they might have unplanned tax consequences.
In summary tax planning is the process of acquiring the latest tax knowledge and take the necessary actions to reduce your income taxes.
We at efile.com help you with tax planning by providing not only free tools but also asking you relevant questions that could result in your income tax reduction. December 31 is a critical deadline for each tax year, since certain contributions (e.g. retirement plan, medical plan contributions, etc. ) have to be completed by December 31. Furthermore, in the case or a marriage or divorce, December 31 is a critical date when it comes to selecting a filing status. When you received what type of income throughout a tax year will determined your taxable income.
Generally, most qualifying tax deductions and tax credits for a given tax year have to be expensed by December 31 of the tax year.
The IRS recommends that you keep all tax-related records for 3 years in case of an audit. However, some old tax documents, such as last year’s W-2’s, can come in handy when you are filling out your tax return this year. Sample list of tax records you should store from previous years and start collection for the current tax year for next year’s income tax return. This is not an exclusive list; you might have additional forms, receipts, etc. that are not listed below. TIP: To make your mountain of documents easier to store, try scanning them and keeping them as PDF files. This way, you can print them out if you need them. If you do this, remember to back up your computer!
Tax Time or Tax Season is usually from January 15 – April 15 (April 15 is the general tax return filing/tax payment deadline). During this time the IRS requires Federal Income Tax Returns to be filed or e-filed for the previous tax year . Most states also require State Income Tax Returns to be submitted during the same time period; some have a May 1 deadline.
During Tax Time you will enjoy the benefits proactive tax planning as listed under point 1 – 3 above.
Plan Now. Avoid Surprises Later.
Start with the free 2018 Tax Calculator and Tax Refund Estimator
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