It’d be nice to file your taxes early in the year and forget about them for the next 12 months, but unfortunately, that’s not the best idea. You should take a little time mid-year to assess your tax situation to determine whether or not you should make any changes. Here are a few things to consider according to the tax pros at the Equifax Finance blog in their recent article, “Five Mid-Year Tax Tips”:
- If your withholding needs changing – if you received a big refund this year, you may want to have less withheld each paycheck.
- If your income changes – if you are not up to date on your estimated tax payments, you may want to calculate how much you think you’ll owe and adjust if necessary.
- If you’ve bought a home – if you’ve bought a home, you’ll be able to get a tax break but it may not offset other homeownership costs, like maintenance, repairs, etc.
- If you’ve bought a new car – if you have bought a car or are considering buying one, you can receive a credit by purchasing certain vehicles if the credit is lower than your tax liability.
- If you have sold or will sell any stocks – be sure that you know the cost basis on your investment accounts so you know how much you’ll pay in taxes should you sell any of them; your brokerage should be able to help you find out this information.
Read the full article and get more information on taxes and other personal finance topics like money management, retirement, credit, identity theft protection and more on the Equifax Finance blog.