How to Get a Jump on Next Year’s Taxes

Finance News

By Dixie Somers

You don’t need a master’s in accountancy to know that there are some major tax changes between 2017 and 2018. However, the best time to make changes in the way your money is handled is long before your taxes are due. Here are some of the ways a professional can help you to make the most of the new tax laws.

Creating a Strategy for Withholding

Because the tax laws passed so close to the end of the year, there wasn’t much time to set up the tax calculations to help people withhold the right amount of money. Your tax professional can help go over your withholding and your personal history to see if you can prevent owing anything at tax time.

Planning Large Purchases

Is this the right year to buy a house or a car? Your tax pro can help you to go over the tax advantages offered this year and give you an idea of which incentives are going to phase out. They can help you to understand tax nuances like property tax thresholds to watch for or the tax advantages of electric cars.

Considering the Family

If you and your spouse make a vastly different income, you have several children, or you are changing your marital status, you need to understand how this can affect your tax bill. While some credits for children have increased in size, others have disappeared, which makes it tricky to know how helpful these breaks will be for large families across the board. There are smart ways to keep more of the money you’ve earned when planning these events in tandem with your accountant.

Payroll and Budgeting

If you own a small business, then there are some major incentives that have been offered over the next year if you know to take advantage of them. This may make it the perfect year to add employees, upgrade or move your business, or invest in a larger business strategy. Your accountant can help you to figure out what kind of moves are just what the tax planners had in mind when creating this bill.

Taxes are Changing in 2018

Like your taxes, the implications for each individual person or business will vary. The tax law continues to be complicated and is, even now, set to offer some incentives for a limited time only. This is why it’s so important to plan early and create a tax-saving strategy for this year and the next few years to come.

 

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