Why and when should I think about taxes?
1) Take action when you life changes! If you get married, have a child, get divorced, buy a home, sell a home, cancel some credit card debt or have a bankruptcy – all of these things can effect your tax return and the increase or decrease of your tax burden. Make sure you schedule a tax planning session with your CPA if you have any life events so that you know how they will effect you!
2) Organize your records. You only need to keep your documents for 7 years and any documents relating to real estate (purchase and sale HUDS, etc.). Anything other than this you can scan and shred / just shred. NOTE: we are having a Shred event on May 21st from 10-12 noon at our offices in Scottsdale. So if you have not yet done your annual shredding, this supports a great cause (Panacea Animal Rescue – Arizona) and you get your old documents shredded securely!
3) Think about itemizing. If you don’t already use schedule A to itemize your deductions but this year you have had some major medical expenses, paid a lot of sales tax on a remodel of your home or purchase of a new vehicle, or had some business expenses that your company did not reimburse you for you may qualify to itemize on your return. This can have a significant impact to your bottom line, especially if you’ve never itemized before!