October is here! It’s one of my favorite times of the year.
Fall weather really kicks in. Kids are back in school. Halloween is on the horizon. Football season is in full swing.
And we taxpayers have plenty of time, three full months, to make moves that can ensure our 2012 tax bills are less scary than the ghouls roaming our streets on Oct. 31 and less intimidating than Ray Lewis on game day.
But before turning attention totally to 2012, some folks have to take care of a bit of 2011 tax housekeeping.
Yep, I’m talking about meeting the Oct. 15 filing extension deadline. You’ve waited this long, so don’t get in such a hurry to make the filing due date that you botch your return.
Watch out to make sure you don’t make common filing mistakes such as math errors, incorrect social security numbers, filling out the wrong 1040 and overlooking interests and dividends just to name a few. It will save you grief and effort in the long run and you definitely don’t want to overlook any tax deductions that could reduce your final IRS bill.
That feels good to have last year’s taxes done, doesn’t it? But you can’t rest for long. It’s now time to focus on your 2012 taxes.
Did your final filing, either this month or back in April, produce a big refund or an unexpected IRS bill? Either way, consider adjusting your withholding now so that you don’t face the same situation next filing season.
If you itemize, make sure you don’t waste any tax-deductible expenses. Some Schedule A claims, such as miscellaneous and medical expenses, must meet percentage thresholds before you can deduct them.
Set up a bunching strategy now to help you meet those deduction requirements. This gives you months to make it work, rather than scrambling at year’s end to come up with a few more receipts.
These are just a few of the October Tax Moves that can be beneficial to you. I recommend looking into them and see which ones could help you save some tax money — and time — as we start the final three-month countdown to the end of 2012.
JDKatz, P.C. is a full-service law firm focused on tax law and estate planning. We are dedicated to minimizing your existing liability and risks while providing valuable tax planning to streamline your tax issues in the future. Please call us at 301-913-2948 to schedule an appointment to meet with one of our trusted attorneys.