Taxes, taxes, taxes. Yes, it's that time of the year. The previous year has ended, end of year statements are coming in, and filing a tax return is in your immediate future. There's no better time than now to prepare yourself.
This piece from Market Watch offers some suggestions on what you should be doing now to make the most out of this tax season. Here are their main tips:
January brings more than just resolutions. It brings obligations too. Jan. 17 is the deadline to finish paying your 2005 minimum tax obligation.
It's a new year. You're starting out fresh. There are new options you signed up for in your company's benefits plan. And you've just taken a quick look at your overall tax picture for 2005 to see if you must make estimated payments. If you learn your withholding is too low, it would be a good idea to raise it. Fill out a new Form W-4 showing either fewer allowances on line 5, or additional tax to be withheld from each paycheck on line 6.
How much did you put into your flexible spending account (FSA) at work for medical? It was deducted from your paycheck. You lose it if you don't use it, right? Well, great news! If you haven't used up the balance, you have until March 15 to get treatment and submit the receipts to the plan administrator. Note: although the law provides this option, not all companies are offering it yet. Check with your own benefits department.
I'll be posting on taxes all the way through April 15, so stay tuned. Personally, I try to have mine done early. I get my information into my accountant by mid-February and she gets it done 2-3 weeks later. Then I sit back and enjoy the frenzied pace of others as they wait until the last minute to complete their returns. ;-)
FMF recommends: H&R Block. Do it yourself or have us do it. It's never been easier.
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