Posted on Jun 7th 2022
While it may feel like tax season is just barely in the rearview mirror, summertime is a crucial period for making smart choices when it comes to your taxes. Follow our tips to make next year’s tax season easier — and maybe even save some money.
Make an Estimated Tax Payment
For some taxpayers, such as people who are self-employed or have side income, it’s necessary to make quarterly payments to the IRS. June 15th is the second-quarter deadline to pay this round of quarterly estimated taxes. Making this second-quarter payment will help you avoid surprises when it’s time to pay taxes at the end of the year.
If you don’t know what estimated taxes are or you’re not sure if you need to pay them, the professionals at Paramount Tax & Accounting can help.
Keep Track of Life Changes
Summer brings around important life decisions. Weddings, career changes, and temporary jobs often come with the season. Keep track of the tax implications of these significant life decisions and stay proactive about the required paperwork and payments. This way, you’ll save yourself from unexpected costs later on.
If you’re unsure about the tax implications associated with life changes or what steps to take, contact us at Paramount Tax & Accounting. We’ll help you understand your filing status and tax responsibilities so you don’t get bogged down with the details.
If you make charitable donations, you probably aren’t doing it just for tax benefits. But saving money also feels good. And the more you save, the more you can give!
Keep careful track of any donations you make and collect receipts when possible. Be as detailed as you can: if you’re dropping off donations at a thrift store, outline the exact items you are donating. For example, if you’re donating a solid wood dresser, write “solid wood dresser” instead of just “furniture.”
It may seem tedious at first, but these small steps can add up and save you significant amounts of money on your taxes — if you keep accurate track of your donations.
Contribute More to Your 401(K)
One of the best ways to prepare for your future and relieve a bit of your future tax burden is to increase the amounts you are contributing to your 401(K). Contributing as much as possible to your retirement plan sets you up for comfort and relaxation once it’s time to retire and lowers your overall taxable income amount.
Your 401(K) contributions do not count toward either state or federal taxes, meaning you reduce your payment now while also preparing for your future. A true win-win!
Talk with a Professional
Working with a qualified and trusted tax professional doesn’t have to be expensive or time-consuming. Talk with a Paramount Tax & Accounting expert virtually or in-person to gain a full grasp of your tax responsibilities and get help with actions like making quarterly payments or staying on top of filing status.
We are dedicated to creating a comfortable, friendly experience for you to get the assistance you need with your taxes. Rest assured that the professionalism and expertise of Paramount Tax & Accounting experts will get you where you need to be each tax season and beyond. Schedule an appointment today!