Tax changes coming, double-check documents before 2019
MOBILE, Ala. (WPMI) —
Before you celebrate the end of 2018 do some work now to avoid unpleasant tax surprises next year.
This is especially important now because 2018 was the first year under the tax cuts and jobs act.
Experts say it's critical to invest your time in these year-end planning tips.
First, increase contributions to your retirement plan, it may be too late to max out your 401-k but experts say it's not too late for other savings accounts.
"Any sort of individual retirement account IRA or a ROTH IRA lets you make contributions for 2018 this year all the way until you file your taxes next year," Chris Burns, Financial Planner
Second, give to charity. Aside from being generous, giving your money to good causes also gives you major tax benefits.
The new tax bill doubled the standard deduction for single taxpayers to $12,000
Third, calculate your tax liabilities.
Experts say it's too late to make any major changes to your paycheck withholding amounts-but say you can estimate how much you'll owe in taxes next year and adjust your allowances for 20-19.
"Do the work to know what you're going to owe, so that you have the time and the space to think through what do I need to do to change that," said Burns.
Last but not least, organize your financial documents. This is the most tedious step, but it helps you file sooner.
Filing early means getting that potential refund check quicker.