Now that April 15th has come and gone: congratulations! The 2016 tax season is over. Let’s use this time to start thinking about next year’s taxes.
Everything from this past year is fresh in your mind: your W-2, your mortgage payments, and your contributions to organizations. You know if you had a big refund, if your rental properties did well or not, and how your investments fared. You can use all of that as a launching pad for your 2017 plan!
You’re already a third of the way through the year, so you’ve got some material to start working with when you think about your plan for 2017 taxes. You can track your spending habits, see if everything goes as expected, and decide what changes you may want to make.
That way, you’ve got a launching pad for 2017 taxes with these four months under your belt. With your tax return, you can figure out a multitude of things:
- what happened/didn’t happen in the previous year that you expected
- what you like (and don’t like) about your spending habits
- how much do you want to owe next tax season/do you want a big refund?
- how can you change your spending habits, if necessary
You’ll want to reevaluate again in July. It should be easy math by then, because the first six months of the year will be done. You’ll be able to transition the first half of the year to the second half, and it should be the same. You can start planning for the 2017 tax season from this plan: estimating your tax liability, your refund, and your estimated tax payment(s).
If 2016 was a problem year, use 2017 to fix it so there aren’t any issues this upcoming tax season. This 2017 plan should allow you to see what your variances, good or bad, are going to be compared to your 2016 plan.
Want to talk with a real-life person to help you figure out your plan for 2017 taxes? Give our office a call. We’d be happy to help.