WHAT SHOULD TAXPAYERS TRACK FOR MID-YEAR TAX PLANNING?

Many consumers may not like to think about it, but tax time is probably closer than they might realize, at least in terms of when the filing period opens. While the deadline is months away, experts generally agree that those who stay on top of planning all year long are going to be in the best position to keep their liabilities as low as possible.

There are many things to consider when doing tax planning far out from the filing deadline, and a lot of them are typically going to be based on educated guesses, according to a report from Bluffton Today. For instance, those who are slated to have a child in the second half of the year should keep in mind that this kind of life event can have major tax implications in a number of ways, and therefore looking into what those are so that they can be properly factored in before the baby arrives and things get a little more hectic.

The same is true for those who are expecting raises or promotions from their jobs, because this too will drastically alter their liabilities, the report said. Spending half the year at one salary and then jumping to another will result in a larger taxable income than the worker likely faced the year prior, and as such they might need to prepare to write a larger check once filing season arrives.

What else could be done?
Consumers should keep in mind that some changes, such as having a baby or getting married or divorced, can alter their filing statuses as well, sometimes for the better, the report said. Of course, when that changes, it should bring with it additional advance work to make sure that the taxpayer knows exactly what will be different about their filings in a few months' time.

Of course, those hoping to make sure their necessary documents are completely ready to go once filing season rolls around should also try to work with a tax professional throughout the year as well. Doing so will help them prepare in this way, and also to identify any potential hiccups they might face which could make their ability to submit a little trickier.