As the calendar year winds down and individual’s schedules typically get busier with work deadlines, social engagements, and the holidays, keeping up with your to-do list can take a little more focus. One thing which shouldn’t be overlooked is the importance of continuing to manage your finances and the impact some decisions could have on your tax footprint for the upcoming filing. Just after the new year, tax season begins and while some of your potential impactful decisions likely took place during the first half of last year, it’s important to remember some of the things which could wind up playing a role on your upcoming return.

Even from a general standpoint, there’s a lot to know about filing taxes in terms of deadlines, payments, and other necessary factors. However, most of the basic knowledge citizens possess on filing returns surrounds the end result and not what can be done prior in order to help legally reduce taxable income or avoid having to pay such a high bill in the spring. Instead, there are a few factors to consider at the end of a preceding year which could help. 

Estimated Tax

Estimated taxes are paid throughout the year in order to help spread the amount of tax owed and avoid a lump sum due payment upon filing. Especially important for those who are self-employed, fourth-quarter estimated tax payments are typically due by January 15 of the following year being credited.

Bonus

If due an end of year bonus, holiday pay, or some other surplus of funds typically not received at other times in the year, making adjustments to your current withholdings could impact your tax. By adjusting the amount taken out of your check, individuals may be able to either pay in money while receiving a near normal check or secure extra money for the holidays without any major impact. 

Gift Tax

The gift tax exemption goes away if not used and for those to which it may apply, ensuring that it is used during the fourth quarter helps to avoid potential future tax payments - provided the set amount is not exceeded.

Wedding

If you’re legally married on December 31 or before, then the Internal Revenue Service (IRS) requires couples to file a married return for that year. If changing from a single return to a joint is going to have a large impact, then considering postponing those nuptials until first-quarter could give you time to prepare for the upcoming tax impact.

Once you’re ready to take a look at how fourth-quarter actions could benefit you or complete an analysis of your complete tax situation, let the accounting and tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for your questions and handling all accounting services, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!