10 FAQs About End of the Year Tax Planning

I know, the holidays are upon us, and the last thing anyone is thinking about is tax season. But as New Year’s creeps into view, this is your last chance to make money-saving moves for your taxes. Earlier this week the RDTC Tax Help Blog posted an entry with answers to 10 common questions about year end tax planning. You can find a snippet of the article below, or click here for the full text.

1. Why should I start planning now?

Most taxpayers do not plan ahead for the coming tax year, simply because they do not want to start stressing about taxes during the holidays. However, choosing to plan ahead will actually make things easier and less stressful come tax season. You should look at tax planning as a stress-preventative measure.

2. What are the advantages tax planning?

Besides reducing stress, end of the year tax planning can also save you a lot of money. Tactics like making an extra mortgage payment or paying state taxes in advance can quickly and easily reduce your tax liability. If you wait until the New Year begins, it will be too late to take advantage of these strategic tax moves.

3. What tools do I need for end of the year tax planning??

Year-end tax planning does not need to be difficult, especially if you have your financial documents organized. You should also get a copy of your tax return from last year as well as a calculator and pencil. It is also a good idea to have access to a computer with Internet so that you can research deductions and credits.