3 Things You Can Do Mid-Year to Prepare for Tax Season

Prepare for Tax SeasonWere you one of the millions of Americans who felt caught off guard or as is if they didn’t have enough time left when the tax deadline approached in April?  You’re obviously not alone. It seems that many Americans find themselves habitually procrastinating the filing of their taxes each year. One of the main reasons for this procrastination is that we’re simply not prepared when the time comes.

However, you do have the ability to break free from this traditional procrastination by taking action earlier in the year. The halfway point of the year is a good time to review your taxes and make changes if needed. Here are three things you can do mid-year to prepare for tax season:

1. Check Your Withholding Amounts

The amount of withholdings currently scheduled on your paycheck will play a significant role in the size of your tax refund or whether or not you get one.  Many people simply choose their withholding amounts when they first start a new job and then never bother to revisit them or change them down the road.

The truth is, it’s important to pay close attention to your withholdings and make changes when appropriate. Circumstances can arise that warrant a change and will make an impact on your tax refund. Adjusting withholdings is a fairly simple process that includes completing and signing a new W-4 form.

2. Revisit Your Record Keeping

Some businesses find that they hit a slow period during the summer months or the halfway point of the year. This provides a good opportunity to take a look at tax-related documents and records to ensure they are in good shape and up to date. Be sure you are carefully accounting for tax deductible expenses and have records in place to they are simple to find come tax season. This not only includes receipts, but also a record of dates of business expenses. Check your business travel mileage and expenses to make sure they add up.

3. Meet with Accountant or Tax Advisor

Many individuals and businesses overlook the benefit of staying connected with their accountant throughout the year. It’s easy to think that accountants are only to be contacted when tax season starts. However, if this is the only time of the year you are meeting with them, you could be missing out.

Accountants are able to offer expert advice and financial perspective that is tough to find anywhere else. Meet with your accountant now to discuss how things have gone so far this year and to strategize for the rest of the year. Making your accountant part of the team can lead to great benefits.

Related: 3 Things You Can Do to Lower Your Taxes

To have a professional accountant take a look at your tax situation at this crucial mid-point of 2015, call Hacker Accounting at 602-375-5251.