NEW YORK (MainStreet) The tax anxiety begins sometime in February. You know that April is just around the corner. You know that it's not long until you're going to have to pay the piper -- or at least the tax man. What you probably haven't considered is that there are ways for you to start dealing with your taxes starting right now; tax strategies that will significantly reduce your tax burden come April 15. Sound too good to be true? It's not. In fact, a lot of it is things you ought to be doing already, but very few people manage to follow through on.
Visit Your Tax Professional
Checking in with your tax advisor isn't something you should just do in March or April. In fact, the end of the summer is a great time to drop in and say hello, in no small part because so few people do it. "Mid-year is a great time to see your tax advisor," says Kay Bell, a contributing editor for taxes at Bankrate.com. "By mid-year, you have an idea of how your income is, so you can make reasonable predictions about how the rest of the year will go."
She also advises that you visit your tax advisor whenever there is a major change in your life, such as having a child, getting married or incorporating a business, to see if there are any tax ramifications.
"If you find yourself surprised in March and April, you definitely need to meet with your tax preparer mid-year," says Mike Campbell, a partner at BDO. "There's probably a reason you're getting big bills when you file your taxes."
Campbell believes that the ideal situation is one where you owe the IRS $1 when it comes time to file. Getting as close to that should always be the goal.