Although the tax deadline is still six months away, an important date just passed that taxpayers should pay attention to, because with all the potential changes coming, the one thing you want is to be prepared.
Although the tax deadline is still six months away, an important date just passed that taxpayers should pay attention to.
Monday, Oct. 15 marked the official end to the last tax season for those taxpayers who filed an extension back in April. Monday also marked 99 days until Jan. 22 — the first day you can e-file 2012 tax returns.
According to H&R Block, “The significance of the 99-day countdown is that it serves as a reminder there is still time to make good choices for 2012 and get 2013 off to a good start.”
As taxpayers look forward, they should be considering money-saving options to make at the end of the year to reduce tax liability. H&R Block also recommends you look into potential tax savings options at your workplace’s open enrollment. Health savings accounts or flexible spending accounts can reduce your tax liability.
Investing in your retirement accounts or making charitable contributions are other ways for you to reduce your tax liability for the upcoming tax season. For instance, you should be contributing the maximum amount to your 401(k) if you can afford it. For charitable donations, there are some things to keep in mind for those donations to be tax deductible.
Most of all, H&R Block recommends planning ahead. The first day to e-file is later than in recent years, so you might get your refund later than usual.
And looking even further ahead, taxpayers should start thinking about filing taxes in 2014 because there are a number potential changes in 2013 that will affect your taxes going forward.
For instance, the Bush tax cuts are all set to expire (you may have read something about that). Plus, there’s the Medicare tax, which will affect taxpayers beginning on Jan. 1, 2013, and other taxes from the Affordable Care Act, for you to consider.