With the current tax year is winding down, the Internal Revenue Service encourages taxpayers to plan now and get organized for next year.
“With less than two months to go before the end of the tax year, you may want to set aside a few moments before the busy holiday season to consider some quick tips that can give the IRS a gift of time and money saved in the next year,” said Dianne Besunder, IRS spokesman for New York.
Gather your notes–Collect and organize notes on your taxes now to reduce stress at tax time. You should consider setting up archiving system before the year ends and when tax documents (W-2, 1099s, etc.) to arrive; file them together so you don’t have to look for when you start to file your tax return.
You should keep any and all documents that much impact on Your tax return. Generally, tax records should be kept for three years, but some of the documents, for example, records relating to the purchase of a home or selling, stock transactions, IRAs, rental properties or businesses, should be kept longer. For more information see IRS Publication 552, books to individuals.
You are maximizing your contributions to your retirement account? This year, You can contribute up to $ 5,000 in the IRA, as well as another $ 16,500 employees 401 (k) plan. If you are 50 or older, the numbers are up $ 6,000 to $ 22,000, respectively.