Mid-summer is usually a quiet time for tax preparation, which makes it a great time to do a quick check and make sure you’re on a smooth track to next filing season. Here are some tips:

Keep good tax records. Keep all your important tax records in one place. You can use electronic recordkeeping software or clearly labeled paper folders and add documents as you receive them. Organized records make tax return preparation easier and may help you identify deductions or credits you might otherwise miss.

Identify filing status. Your filing status affects your tax requirements, deductions, credits, and tax liability. Life changes such as marriage, divorce, birth, or death may affect filing status and eligibility for certain tax benefits. If life changes may have altered your tax situation, be sure to notify our office so that we can make any adjustments that are needed.

Understand adjusted gross income. AGI is income from all sources minus any adjustments. A higher AGI generally means a higher tax rate. Tax planning may help lower AGI and reduce taxes owed.

Make address and name changes. Promptly report address changes to the USPS, employers, and the IRS using Form 8822, Change of Address. Be sure to also report name changes to the Social Security Administration. Keeping this information current can make filing a tax return easier.

Save for retirement. Saving for retirement can also lower your AGI. Certain contributions to a retirement plan at work and to a traditional IRA may also reduce taxable income, and thereby reduce the tax you owe.

This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.