As the end of the year approaches, we know you will be more busy with the holidays after driving your truck throughout the year. You expect these dates to arrive and you will be able to spend and enjoy as much time as you can with your loved ones. It is also an excellent time for making plans and focusing on finances; particularly how to plan everything related to the upcoming tax year.
Tax planning is not necessarily easy or fun, but there are certain things we must spend a little time on, while finding ways to owe as less as possible to Uncle Sam.
- Organization: Assign the place where you will be keeping all the documents you receive for your tax return. More than likely, good organization will not help you save on taxes, but may reduce your stress.
- Contributing to your retirement plan: If you already don’t have a retirement account for 2015, you still have time to create one and contribute to it. The deadline to contribute for 2015 is April 18, 2016 and with the savings you can reduce the taxes you have to pay. Remember that if you contribute $5,500 per year to an IRA during 20 years ($5.500 X 20 = $ 110,000), your contributions would go up to $260,000.
- Estimated Tax Payments: If you have not paid enough tax during the year, it is possible when doing your taxes you will have to pay a large amount plus interests and penalties. According to IRS rules, you should pay 100% of what you paid last year. Remember, try not to pay too much; it is better owing some taxes than expecting a refund.
- Claim home office expense: The eligibility rules for claiming deductions for “home offices” has discouraged most taxpayers. However, in the case of truckers who do not have a fixed place for their work, they regularly use a space at home for the administration and management of activities, where most documents are kept. This place should be used exclusively for business.
Finally, let me recommend you to present information of your dependents; do your taxes on time; and send them electronically.Remember, if you have questions on this or other item call Jagg Tax Solution Inc. at
Merry Christmas and Happy New Year 2016.