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Steps to Take Today for the 2020 Tax Season

Steps to Take Today for the 2020 Tax Season

In 2017, the Tax Cuts and Jobs Act applied drastic changes to U.S. tax laws, affecting the income brackets and refunds of individuals, businesses, and large corporations. While many remain unaware of or confused by the way this law affects them, there are steps you can take to ensure you are fully prepared for the 2020 tax season. If you would like to minimize stress and avoid owing the IRS more than expected, employ these six strategies:

1.Get up to date on new tax laws. The complex language of this legislation can be difficult to get through, but putting in the work now will save you from unexpected obstacles later. Explore this guide to learn about key changes to tax brackets, deductions, and more. Some of these changes include:

  • Increased child tax credit
  • Limited deductions for mortgage interest deductions
  • Elimination of deductions for alimony
  • Removal of personal exemption

2.Adjust your withholding according to changes in tax brackets. In early 2019, many Americans who expected refunds ended up owing the IRS instead, because their employers withheld less from their paychecks. Plan ahead now by using the IRS withholding calculator.

3.Consider payment options. If you are self-employed, or you discover ahead of time that you will end up owing the IRS, you may need to make estimated tax payments throughout the year. The sooner you plan ahead, the more you will be able to save.

4.Get organized as soon as possible. Everything you do now affects what you will owe or receive next year. Keep careful track of everything you may need (e.g. receipts for potential deductions, such as business expenses, mileage, retirement contributions, and donations). This will ensure the filing process is as efficient and accurate as possible.

5.Update your retirement strategy. Tax deductions vary greatly based on your retirement plan. A strategic retirement plan is crucial for your future financial security, but many don’t realize how it will impact their immediate future. For instance, contributions to a traditional retirement account are tax-free. This is why planning for next year’s tax season and for your eventual retirement should go hand in hand.

6.Employ an experienced tax attorney. A skilled professional will help you overcome a wide variety of obstacles, whether you owe back taxes, need professional tax advisement, or are currently facing an audit or fraud accusation.

Preparation and organization are key to financial security. It is never too late to plan for the future—take advantage of these techniques in order to stay ahead of the game.

Contact Our Chicago Tax Relief Law Firm Today

Attorneys Tax Relief, LLC has the expertise needed to help you resolve seemingly insurmountable tax crises. Call (800) 261-6671 with questions about debt, audits, liens, and more—we will schedule your free consultation and find the best possible plan of action for your case.