The Four Things You Need To Do Between Tax Seasons
By By Keila Hill-Trawick
We seem to spend the months leading up to the dreaded mid-April tax deadline preparing for the IRS and the state to tell us whether they want a piece of our savings or not. But once tax season is over, then what? How can we make sure that we’re taking care of our money with as much diligence throughout the year as we do when it’s tax time?
Let’s look at four things you can start right now, before it’s time to face our taxes again:
Look at your withholdings.
Whether you had an amount due or received a refund, just after tax season is a good time to look at your W-4 at work and make sure it’s still appropriate for your status. Have you gotten married? Had a child? Look over the deductions you’re claiming at work to make sure that your withholdings line up with your expectations when tax time comes around again. If you are self-employed, re-evaluate your estimated tax payments to make sure they are sufficient to cover next year’s tax burden
Review upcoming tax laws.
For the first time in a long time, tax changes will affect nearly everyone next year. Many people who have itemized consistently will no longer be eligible to do so, as standard deductions and state and local tax thresholds change. Make sure you do your research or reach out to a professional to see how it will affect you, and what you can do to be proactive before tax season is upon us.
Save some money.
Tax refunds are one of the few times throughout the year where a lump sum hits our accounts without us having to work for it. This is a perfect time to devise a plan of action on how to split what you’ll spend from what you’ll save. If it’s sitting In your checking account, choose a percentage to transfer to your savings to start or add to your savings account for potential emergencies down the line. If you’ve already spent or decided where to the funds will be allocated, think about what steps you can take to save a bit more throughout the year.
Take care of yourself without breaking the bank.
Summer is quickly approaching and you know what that means. No, not bikini season.
Free workout season! Summer is the time of year where many gyms and studios are offering free and discounted classes to take advantage of the lovely outside weather.
Make sure you’re taking the time (and maybe a few of your refund dollars) to prioritize your health and wellness. You could take a new class at a studio you’ve never been to before, or explore parts of the city you live in by taking a new run or bike route.
Got a side hustle? Thinking about starting your own business? Head to Little Fish Accounting to schedule a free consultation to discuss your accounting and financial management needs.
Keila is an innovative and driven strategic business advisor who partners with freelancers, solopreneurs, and small businesses to plan and reach their financial goals . After spending over a decade working in finance and accounting in both the government and private sector, Keila decided to launch Little Fish Accounting to serve as a trusted partner in financial and tax planning to drive business results and growth.