Tis the season for many business owners and individuals to be in a panic over taxes. Innovative
Financial Group Atlanta can stem this panic by assisting and advising you ahead of tax season.
Last-Minute Tax Planning
Many people think that when the date rolled over to January 1, 2020, their tax bill for 2019 was
set. However, there are still several things that you can do to lower your tax bill before April
comes around.
Before we get to the deductions, you should begin getting all your tax paperwork in order so that
the process is as painless as possible. From W-2s to 1099s, having your tax documents ready to
go is the first and most crucial step. Find and organize all pertinent receipts for the year, you’ve
been saving them up all year, and now it is time to make them pay off. Place similar documents
into their own folders so that you can have each section of your tax work ready to go. It may be
beneficial for you to create a tax document list so you can keep track of what you have and what
you are missing. All of this is so you don’t have to scramble to find documents when you are
ready to file.
There are also a few deductions that are still available even after the start of the year. Unlike a
401(K), you can still contribute to an IRA and have it count towards your 2019 tax bill. You
have until April 15 to do this, so don’t wait. Also, it is essential to note that you can only do this
with traditional IRA’s, Roth IRA’s cannot be used to deduct taxes from last year. Nevertheless,
Roth IRAs do have the benefit of being tax-free once you are in retirement, so it is up to you
which one to use. If you need help understanding how to do this, we can help.
While these are some excellent ways to lower your tax bill for the past year, one of the most
important things to be doing right now is adjusting your withholding's for the coming year.
Ideally, when tax season is here, you should neither owe money nor should you get a refund.
Why wouldn’t you want a refund? Well, because getting a tax refund means that you more or
less gave the government a 0% interest loan for the duration of the year, just think what that
money could have been doing for you instead of sitting in the treasury department’s coffers. So if
you are scrambling now to figure out what you owe or what your return is going to be, why don’t
you come to see us now so that 2021 will be a smoother tax season.