Getting Prepared For Your Tax Return – Tax Year 2016

Michael Lodge

by Michael Lodge

You have a few more months to get organized for your 2016 tax return.  Which means you need to start looking at your current financial situation, what adjustments you need to make in order to prepare a tax return that states a solid position for you to take.  So lets go over some of the needs to do right now.  The more organized you are the better off you will be.

  1. W-4 – it is time for you to sit down and look at your wages and if you have taken enough taxes out.  You may even want to thank about taking a little extra out so that you don’t owe at the end of the tax year.  Sit down with your tax accountant and go over your year end withholding amounts.  If you have filed exempt from taxes it may put you in a very bad tax situation if you did not follow the rules of filing exempt.  If you did not qualify for filing exempt you may be subject to criminal charges, so make sure you qualify to be exempt and if you owe taxes at this time you had better make sure you pay into the system before December 31, 2016 to cover your tax liability.  Again, sit down with your tax accountant and make sure you are in compliance.
  2. Changes in Life Events – If you have had significant changes to your life it will affect your tax return.    There are big life events that can change your life and the life of your tax return.  A) Getting married, B) Having or adopting a child, C) spending money on looking for work, D) relocating for work, E) Starting a small business, F) Working from home on a regular basis, G) being self employed and being given a 1099 for self employment – and the list goes on.  Call your tax accountant and discuss what is the best tax approach to take.
  3. Mileage Logs – If you are self employed and using your car between jobs or clients – keep a mileage log.  It is vital per IRS requirements.
  4. IRA and Retirement Accounts – talk with your tax accountant to see if by opening a retirement account can reduce your tax liabilities.  Make a contribution to your account this year to take the deduction.
  5. Prepare to File Early – over the year you should have kept all of your receipts, you should have organized your documents, documented all of your rental income and expenses, Schedule C income and expenses, and everything else that will hit your return.  You should have it organized and ready to present to your tax accountant.  Book an appointment early.  In our office we start booking appointments for the tax season the first of September, we have already started booking appointment early for 2017.  Call our office at:  877.778.1770 Ext 0 or book online at:  www.icontaxgroup.com
  6. ORGANIZE – if you have not started an file system to keep track of all of your tax receipts, you need to do so.  The more you are organized the better prepared to put together documents for your tax accountant, and you are ready for any audit that might happen.  The better organized you are the more prepared to anything.  Get organized.

We are getting closer to the end of the year, months go fast, make your tax preparation appointments early.  Call our office at:  877.778.1770 Ext 0 and make an appointment.