2018 Tax Return
The 2018 tax return changes have many people concerned. But the more prepared you are, the less likely you are to experience any negative surprises. In this article, we will go over five helpful tips to prepare for your 2018 tax returns.
Review Your 2017 Return
One of the best things you can do is review your 2017 tax return. Look over your problematic or stressful areas that you dealt with last year. By doing this you can think about what you can do to alleviate those problems this year. Or you can get advice from your tax preparer on how to avoid those specific issues again.
Familiarize Yourself with New Tax Rules
In December 2018 the Tax Cuts and Jobs Act made substantial changes to the Tax Code. This means that some of the credits or deductions you once took may no longer be available. But there also may be new credits or deductions that may apply to your situation. Familiarize yourself with these new changes will help you to prepare yourself for your 2018 tax return and make the necessary adjustments.
Check Your Retirement Savings
401k and IRA contributions are tax deductible. The 401kcontribution limit for 2018 is $18,500. The 2018 contribution limits for IRAs is $5,500. However, these may be subject to income restrictions and contribution limits. If you are not subject to these, maxing out your contribution limits will help you to reduce your tax liability while helping you increase your nest egg.
Gather Supporting Documentation
An important step in preparing for your 2018 tax return is to gather all of your supporting documents. This includes, but is not limited to:
- Mortgage Documents
- Medical Bills
- Imvestment Documents
- Charitable Donations
- Education Expenses
- Business Receipts
You can access a more comprehensive supporting document checklist by clicking here.
Meet With Your Tax Preparer
If you are especially worried about what this tax year may bring you should also schedule some time to meet with your tax preparer. They can review your situation and help you make any last minutes tax moves. They also can help to further educate you on the new tax laws so that you can better understand and be even more prepared for 2019.
You Can Be Prepared
If you follow these five helpful tips you can be prepared for your 2018 tax return. It is important to remember that the earlier in the year that you start preparing, the more successful you will be.
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